Increasing your size?

Discussion in 'Trading' started by TradingScrub, Jul 15, 2010.

  1. Hello folks,

    I am a relatively new day trader (1.5 years) and I was wondering how successful traders go from beginner traders using small size making a little money, to moderate or advanced traders using big size making a lot of money (or at least enough to live off of!)

    My strategy is mainly reading the level 2, seeking out buyers and sellers and making trades based off of their behavior and tendency to move prices. While I am profitable 80% of the time and my average up day is greater than my average down day, I simply don't make enough money.

    The simple solution is to get bigger, however, each time I try to do this I find it rarely results in more money. There are a number of issues that cause this, mainly: panicking when I am out of the money with big size on...and taking profits on most of the size far too quickly when I am in the money. There are also issues of scaling back on my size when I am up money in fear of losing it all on a bad trade, and simply not trying out trades I normally would because they feel too risky to put on big size.

    So, with that being said, anyone have any advice from personal experience on how to get to the next level? Did you one day say "this is now my minimum size" and stick to it? Did you slowly increase your size over time? Did you selectively pick times to put on size? How did you deal with the mental aspect of a losing trade possibly costing you what feels like a lot of money from your small size days?

    Or is this simply an nonviable strategy due to scaling issues and seemingly increasing lack of real buyers and sellers that you can actually lean on (stupid HFTers!)?

    Any advice appreciated, thanks.