Whether we're tinkering with our demo accounts or playing with a few dollars in our live accounts, it's never been far from our minds that our accounts will go big in the future.
Unfortunately, many traders struggle with taking the next step and trading larger positions.
Some find it difficult to risk losing the small profits they've worked hard for over the last few months, while others simply can't stomach risking larger positions.
Taking on more risk has its benefits. But be cautious...!!!
While increasing your risk can result in bigger wins, it can also magnify your losses and wipe out your entire account.
To help you avoid the pitfalls of big trading, I'm sharing three simple tips for increasing your risk:
📌 1. Be sure that you are in the green zone.
Don't even consider increasing your risk if you're not consistently profitable with small trades.
If you can't trade small positions successfully, what makes you think you'll be able to trade larger ones?
If you believe you are prepared but your account is still in the red, prioritize getting it back into the black. That's why demo and small accounts exist.
Continue to trade small positions until your performance justifies trading larger ones. After all, you don't want to compound your losses by taking larger positions.
📌 2. Go slowly and steadily.
Just as you wouldn't rush into fighting elite world champions after your first boxing lesson, you shouldn't rush into increasing your trading size.
Do you want to bite off more than you can chew?
The key to becoming comfortable with taking a larger risk is to gradually increase the size of your positions. If you're not completely comfortable with the level of risk you're taking, it will most likely be reflected in your account balance.
Rather than making a big jump, aim for small, steady increases. It will have a less negative impact on your trading mindset and will allow you to adjust to larger risks more smoothly.
📌 3. Pay attention to percentages rather than dollar amounts.
I'll reveal a little trading secret that will assist you in adjusting to larger trading sizes:
Concentrate on percentages rather than dollar figures.
A 1% risk on a $10,000 account is the same as a $100 risk. Risking 1% on a $100,000 account, on the other hand, is equivalent to risking $1,000. You can trade larger by risking the same percentage on a larger account.
When you focus on percentages, it also helps to put profits and losses into proper perspective.
Losing 1% on a $100,000 account will feel very similar to losing 1% on a $10,000 account. However, when expressed in raw dollar terms ($1,000 versus $100), it is much more difficult to swallow.
If you take it slow and steady, and focus on percentages rather than dollar amounts, you should be able to smoothly transition to trading larger trading positions. Above all, don't increase your risk if you're not already consistently profitable trading small.
Also u should add this which happened to me today I am so pissed off :((
Wondering around and constantly reading anyone and everyone analysis is the biggest stupid mistake I was doing very good till this morning I came across some idea about stx/usd pair. There was a hammer investing trend on the 4H time frame yesterday Sure May be correct But it fooled me The FOMO started and I left the trade Sure I lost money 20k from my gainings but still It was so stupid to pay attention I left the trade and it is doing good now :(((
Pls do not go around and look at everyone ideas. Even with yellow PREMIUM to the side of it
My input. Thank u
LoadOfBull
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@meveme I feel your pain…I resonated with this post/comment a lot. the biggest thing I’ve learned so far as an intermediate beginner that does frequent sculpt trading is taking notes on the short term trades I have (15M,30M,60M) and compare them to mid-long term (4H, 1D, 1W) and always seek out patterns from a bigger perspective to constantly apply trend lines…support and resistance really come in clutch for long term trades. So even tho you may be taking Ls on the 4H if you look at it from a long term time chart this’ll help out! 😊
RocketBomb
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@meveme, Other people's ideas - other people's thoughts! Taking other people's thoughts - you automatically agree with the possibility of making other people's mistakes!
meveme
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@RocketBomb, ooooofffff. That’s right. I never do it. How I did it this time. Stupid