Are you risking enough per trade?
Are you falling into the small size trap?
Are you risking enough? 1 – 2% risk per trade. Keep the trades small. All good advice right?
Can we trade TOO small? I think so, I believe trading too small can be an easy comfortable trap to fall into. Before I explain, let me qualify that statement.
You should trade small if you are:
- A new trader, learning the game
- Dialling downsize to recover from a setback with a view
- Any other valid reason
(After all trading small keeps you safe from damage, so it’s a useful tool.)
But, if you are trading small because you are scared and fear losing, that might be something to address… None of us are here to just beat the base rate by a few bps are we now…
“Scared money don’t make no money”
Or in trading circles.
“Trade to win, don’t trade not to lose”
Listen to my latest podcast episode Are you risking enough? where I dig into this in more detail.
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