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the POWER of SCALABILTY.. by chinito

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· @chinito ·
$10.46
the POWER of SCALABILTY..
![](https://images.ecency.com/DQmNmMBANymoakf7LkbTVEnjCAGdBDJLr4XW9kxNfSFqK9u/image.png)

I can remember.. back in 1999 (yes, way back then.. before some hivers were even born!).. I was in college at University of Hawaii, and I had just learned about this thing call futures/commodities. (actually, I already heard of that from the awesome movie, Trading Places)

![](https://images.ecency.com/DQmSxkizAy3KeFKVmPBhKp2YKZvUqWkjbwMSQDysT44y6Yp/image.png)

After some study of what was involved, I learned how a person could trade a thing, and if successful, would profit X amount.. say $100. But then, SCALABILITY (at least how I thought of it) would work so that, if a person were to simply double, triple, or multiply the initial contract size of what was to be traded... then, so to is the result doubled, tripled, or whatever multiplier used.

It sounds like that SHOULD be the case with anything, but think about it? If I am working 40 hours at a job, I get paid X amount in my paycheck. So, if i double that, and work 80 hours/week, I would get paid double also? Well, maybe, but let's say I really need the money, so I quadruple the amount of hours I work.. will I still get paid what I should? I don't know about u, but I do have to sleep sometime AND no boss I ever had would let me work that much overtime.

Here's another example I thought of.. say I post once per day on hive. I earn X amount on average for doing that. OK, now I really want to increase my rewards, so I post twice per day. OK.. my rewards might double as well. Now, I want to push it some more and I post 3 times a day.. up to 10 times per day? Is the author posting really a great example of SCALABILITY? I say no, because at some point the system (the hiver's who normally upvote your posts) would catch on to what you were doing and I probably NOT support such posting practices.

However, I thought of a great hive related example of excellent scalability.. HBD. See, if I had 100 HBD in my savings, I will get 20% APR on that.. I'll make 20 HBD in 1 year. Now, if I want to make 10 times that much, I simply increase the amount of HBD in my saving, also by 10.. put 1000 HBD in savings. In a year, I have made 200 HBD, or 10X my original profit of 20. Now if only I had a million HBD to put in my savings.. :P

I looked up the official definition.. 

![](https://images.ecency.com/DQmR2ABGu3oxT4tLmwbp4M8DPjYnUC33utyVW85KiLyjRDH/image.png)

*from Investopedia*

According to that definition, hive works (up to some millions I guess) due to market cap, and the stock/futures/forex/etc financial markets work due to their incredible size. I could trade 100 times the size of what I currently trade, and the market wouldn't even flinch.. it could care less about my miniscule account.

All this time, I thought scalability was that one could multiply their starting capital used, and thus, the result profit or loss, would also be affected by that same exact multiplyer.

I started trading this year with just 1 contract per trade..

![](https://images.ecency.com/DQmaDPPVXDZJR7cPAp4sd1XiwUf9wtykaJE4u8rPsgrzm1D/image.png)

and now I am doing 2 or 3 contracts at a time..

![](https://images.ecency.com/DQmex2H4WN21gyob7oxbhAfngwyJKH5gXfKK8omkW65hHze/image.png)

So, for no more effort, I am doubling, tripling, or whatever multiple (in this case, # of contracts traded) I choose, (although, I heard anything beyond 100 contracts tends to take longer to fill) I envision that I will stop long before I ever trade 100 contracts per trade. At some point, it's just silly.. the money that u can win or lose.. why even play around like that?

It's powerful stuff and I am shocked that I hardly ever hear it mentioned. In fact, I am pretty sure only my trading friends have ever talked about it or maybe I hear it mentioned on some vid I watch..

Oh well, like hive, it's my little secret.. although it's NOT! I mean, *everyone* SHOULD know about, and join, hive now.. right??
👍  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and 77 others
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vote details (141)
@hivebuzz ·
Congratulations @chinito! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

<table><tr><td><img src="https://images.hive.blog/60x60/http://hivebuzz.me/badges/postallweek.png"></td><td>You have been a buzzy bee and published a post every day of the week.</td></tr>
</table>

<sub>_You can view your badges on [your board](https://hivebuzz.me/@chinito) and compare yourself to others in the [Ranking](https://hivebuzz.me/ranking)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>



**Check out our last posts:**
<table><tr><td><a href="/hive-122221/@hivebuzz/pud-202306"><img src="https://images.hive.blog/64x128/https://i.imgur.com/805FIIt.jpg"></a></td><td><a href="/hive-122221/@hivebuzz/pud-202306">Hive Power Up Day - June 1st 2023</a></td></tr></table>
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@urri2020 ·
In the late 1990s, I also knew about trading futures with a computer program. But he started trading in 2006.
👍  
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vote details (1)
@chinito ·
😎👍 that's cool. reminds me of the year I spent (wasted) playing around with different EA's (expert advisors).. trying to trade forex with programs.. problem was, I WON at first, and that got me hooked into it.. :P
👍  , ,
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