Learned something today – Learn to trade like you are in a big position size

Learned something today – Learn to trade like you are in a bigger position size

The problem that I have previously while training on small position size is that I feel like I can risk my small portfolio and trade crazy moves like:

  • Buy/ Sell premarket
  • Buy when the market open
  • Hold shares until the market open
  • Buy too much late when it’s ready for experienced traders to lock in profit
  • Short too much early when there is still MOMO and trendline didn’t break
  • Didn’t lock in profit on the way and when the stock starts to reverse, I hold until it reach my 1% or 2% stop loss.

What I will be doing now to rectify the problem above is:

Trade like I am in a bigger position size. I will assume that my position is size is multiply by 10.

Eg. If I am only trading with $1500 position size, I will assume that I am trading with $15,000. This will therefore make sure that I take the Profits and Loss seriously.

I will keep on working on this rule to make sure I will never trade crazy stuff.

Timothy Sykes profit.ly profits

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One thought on “Learned something today – Learn to trade like you are in a big position size”

  1. Oh man, I get you perfectly! I think the same way: small! Instead we should be thinking big to get big rewards! I’m so tired of making these mistakes that you pointed out… I almost always hold until I reach a 1-2% stop loss. If I do this again and again, I’ll never make any serious money :(.

    Like

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