6 Signs Your Trading Size Might be too Small

At the start of our trading journey, it is a very common problem that newer traders use too much leverage.

Why?

They are excited, they are new, they don’t know what they don’t know, and they just want to make a lot of money. They want the kind of returns people with 5, 10, 15 years of experience are making - and they want it TODAY!

So they trade big, and inevitably run into a bad trade…. Often just one single one… and lose a large part of their trading account.

They are shocked! They are stunned - they become fearful, and become paralyzed by risk. Then immediately cut down their trading size to the lowest amount possible.

But the returns are now SO SMALL - that it will take them 50 years to earn back their one trade loss.

This really crushes your confidence.

So today I want to discuss a few scenarios that could indicate you’re trading too small:

You are moving your stops to increase risk when a trade goes against you
You are moving your take profit orders when price gets close to them
You get into a trade expecting to lose, to get your stop hit
Your winners are small, but your losses are huge
You are trading money you cannot afford to learn with
You turn a day trade into a warren Buffet investment

These are the 6 signs we go deeper into, and explain how each one may be impacting your trading and what you can learn from it.

I hope you enjoy the show.

Resources

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