Strategies for Increasing Trading Size

Exploring Different Ways to Scale Up

At some point in your trading journey, you want to size up your operation.

You feel like you’ve proven consistency and earned the right to start dialling things up.

So, what are your options for increasing size?

  1. You reach certain account balance milestones and then make adjustments.
  2. You dynamically adjust size for each trade based on account balance.
  3. You use shock therapy and size up big in one clip.
  4. You learn to add to your positions.

Let’s explore…

Ok, so 1 is the most popular.

“Once I hit £5k profit I will increase my size”

And this is not a bad way to do it, right?

You hit a new milestone on your account and then add a clip or two of size.

Number 2 is more work.

You need to make constant adjustments to position size depending on where your account balance is.

Both up and down.

Traders deploy 3 when they have been struggling with size and need to try something new.

It’s a big leap in size, combined with a lot of mental rehearsal and risk acceptance before you start trading.

It’s risky, but can be just the ticket if you’ve tried everything else.

Finally, we have 4…

Pyramiding into positions can be super effective. You incrementally add size as the position moves in your favour.

It’s a smart way to get more exposure without taking on that additional risk at the beginning.

Now, adding to trades is a whole new topic…

But one thing to be aware of here is it’s effectively learning a new strategy or method.

Adding is a skill.

Add too late and you can ruin a great trade.

Add too soon and you’re taking on more risk than you wanted to.

So it can work well, but it’s not a holy grail by any means.

Unlike the others which is just a change in the ticket order size, adding requires a strategy adjustment which might not be something you want to do.

Ok, so in summary:

  • Size up only when you have proven consistency and have ‘earned the right’
  • Consider your sizing options
  • Write out a plan of action
  • Accept the new increased risk
  • Stick to the plan

Oh, and of course don’t listen to me… Make your own decisions, it’s your hard-earned money at risk!