The more i trade, the more i realize that trading with big size is just stupid. Sure, you will have your occasional huge win. Sure, there are a rare times when trading with size is good to capitalize on ‘easy’ trading setups but i believe that 95% of the time trading with size will surely lead to over trading, micro managing, flinching at the smallest wiggles, lead to emotional decision making, stressful trading and burnout.Trade small positions and you will see how you will think more clearly, you will stay objective, you will stay calm under pressure, you will trade less and ride out bigger
trends for more ‘profits’. Small positions will not bank you the thrilling homerun but they will accumulate into your account at the end of the month/year. Large positions will give you a homerun from time to time and they will eat your lunch from time to time too and at the of the day, you are left wondering ‘what happened’??So, trade small positions and stay unemotional!
Archives of “emotional decision” tag
rssLearning to do nothing
This is a lesson I keep needing to come back to. I can see that trading for amusement has been my own downfall a thousand times in the last few years, and to just sit at the sidelines can be painful.
I just read a brilliant quote by the trader John Piper.
“Once able to trade, it is very likely that a person will make the emotional decision to do just that when bored. This timing is unlikely to correspond with a low risk trading opportunity.”
“Once able to trade, it is very likely that a person will make the emotional decision to do just that when bored. This timing is unlikely to correspond with a low risk trading opportunity.”
Learning to do nothing
This is a lesson I keep needing to come back to. I can see that trading for amusement has been my own downfall a thousand times in the last few years, and to just sit at the sidelines can be painful.I just read a brilliant quote :
“Once able to trade, it is very likely that a person will make the emotional decision to do just that when bored. This timing is unlikely to correspond with a low risk trading opportunity.”