12-15-2004, 07:26 PM
To Abramelin:
:blush: My apologies for sowing confusion by mingling two topics.
I did not wish to imply that billions are needed. My point was that someone who has a base of (for example) 700,000 euros would be able to handle ups and downs of 20,000 with much more equanimity than someone who has only 50,000 in total.
I would disagree on the definition of 'good trader' if you want to include Nick Leeson in the category. By definition, he couldn't be 'good' if he didn't understand and use the principle of cutting one's losses. (OTOH, they were not his losses, were they?)
As to time spent? I cannot say, but I have the impression that he feels that his time spent on reconnaissance is part of it all, not just the trades he makes.
And as to losses? I have no doubts that there are times when he screws up. As we are merely aquaintances (my conversations with him have taken place while timing distance races) I cannot ask easily. My point was that this man treats it like a job, not something he dabbles in on the side.
Perhaps I have an excess of caution in me. However, I would like to point out that I do know many professionals (doctors, dentists, chiropractors) who are quite brilliant in their own fields, and who have made the mistake of assuming that said brilliance will always translate to equal brilliance in their investment choices and that they do not need more than a cursory look at them to make great decisions. :blink:
:blush: My apologies for sowing confusion by mingling two topics.
I did not wish to imply that billions are needed. My point was that someone who has a base of (for example) 700,000 euros would be able to handle ups and downs of 20,000 with much more equanimity than someone who has only 50,000 in total.
I would disagree on the definition of 'good trader' if you want to include Nick Leeson in the category. By definition, he couldn't be 'good' if he didn't understand and use the principle of cutting one's losses. (OTOH, they were not his losses, were they?)
As to time spent? I cannot say, but I have the impression that he feels that his time spent on reconnaissance is part of it all, not just the trades he makes.
And as to losses? I have no doubts that there are times when he screws up. As we are merely aquaintances (my conversations with him have taken place while timing distance races) I cannot ask easily. My point was that this man treats it like a job, not something he dabbles in on the side.
Perhaps I have an excess of caution in me. However, I would like to point out that I do know many professionals (doctors, dentists, chiropractors) who are quite brilliant in their own fields, and who have made the mistake of assuming that said brilliance will always translate to equal brilliance in their investment choices and that they do not need more than a cursory look at them to make great decisions. :blink:
And you may call it righteousness
When civility survives,
But I've had dinner with the Devil and
I know nice from right.
From Dinner with the Devil, by Big Rude Jake
When civility survives,
But I've had dinner with the Devil and
I know nice from right.
From Dinner with the Devil, by Big Rude Jake