Size Does Matter

It is often said that to grow as a person that you have to stretch and move out of your comfort zone. I definitely believe in this concept, however…

When it comes to trading stocks, futures, options or forex, stepping outside your comfort zone can be dangerous!

Let me explain… Say, a trader is used to trade 10% of his/her equity at a time, with the average value of 10% risk, They are very comfortable putting this amount at risk. What's more, they never experience any anxiety and can sleep well at night at this level.

However, watch what happens when these traders decide to up their ante to 15 or 20% risk margin. All of a sudden they are worried about every tick against them and start riding an emotional roller coaster based on the current price of the currency.

At these levels they become much more emotional and their judgment becomes cloudy. As a result, they start making bad decisions that never occurred at the 10% risk margin level.

A good idea is for you to take a good hard think about what "size trader" you are and where you are completely comfortable at. Write these numbers down and force yourself to never deviate from them.

When the time does come to raise your bet size up, do it in small increments over time.

I assure you, that by sticking to this simple concept that it will make trading a much more comfortable and profitable experience.

Be patient and stay focused and the money may roll in at levels you never thought possible!