How to Know When You’re Ready to
Size Up

Sizing up can boost your P&L, but only if you’re ready.
Here’s how to know when the time is right.

Ah sizing up… something on the mind of most traders.
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“How do I get bigger and make more from my trades?”
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But before you take that leap, ask yourself this:
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​“Why do I want to size up?”
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​Now, this might sound like a stupid question. You’re probably thinking, “To make more money, obviously, Mark. Duh”
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​Sure…but if that’s the objective, there are other things you could do first.

SIZING UP

As soon as you increase size, you increase risk. There’s no getting around it. Double the size, double the risk.

And here’s where many traders stumble, they start trading differently, using tighter stops or second-guessing their setups because they’re uncomfortable with the larger position.

So, before you jump to sizing up, consider these steps first:

1️⃣ Reduce your losers.

If you can eliminate unnecessary losing trades, you’ll boost your bottom line without taking on more risk.

2️⃣ Hold your winners longer.

If your strategy allows for it, extend your holding time on strong trades. Why take on the risk of a new trade when the one you’re already in is working perfectly well?

Exhaust these options first.

Squeeze every drop of profit from your winners (within reason, we live in the real world here, it will never be perfect) and cut the dumb mistakes. That alone is a significant boost to your P&L.

READY TO SIZE UP?

Let’s assume you’ve optimised your trading, now what?

Before you size up, make sure:

  • Your discipline is bulletproof.
    Any cracks in your discipline will be magnified by larger size.
  • You’re consistent.
    Erratic returns and sizing up don’t mix. Murphy’s Law almost guarantees you’ll size up right before a drawdown!
  • You’ve handled drawdowns before.
    Have you proven you can stick to your process through a rough patch? If not, hold off.

Be brutally honest:

Are you sizing up because you’re frustrated with slow progress, or is it a calculated decision to scale up a system that’s been working consistently over time?

When the time is right, you’ll know… you’ll feel like you’ve earned the right to trade bigger. At that point, you can create a solid plan of action to increase size with confidence.