Just starting, how do you guys size up?

Discussion in 'Professional Trading' started by FastandFurious, Aug 9, 2006.

  1. Well, I'm scalping and currently, I have just been trading 100 lots. For the past week, I've tired 200 lots and want to be consistent trading 200 lots because I want to have progress, but moving from 100 lots to 200 lots is not that big of a change but the numbers (profit/loss) is x2 so I'm still a little anxious, nervous as if I lose, I will lose twice as much...

    How do you guys progress from moving up in lots as you learn? How do you feel physcologically or is it something that you just have to get use to, and once you know it, 200 lots is nothing...?
    How do you guys progress? Do you go...100, 200, 400, 600, 800, 1000?
  2. 100 lots in futures?

    or 100 shares?
  3. pardon me, 100 shares in equities.
  4. repeat recognition of the same setup + level of risk (low)

    seeing it more and more, will give you the confidence to add shares since you saw the same setup 30000 times and know whats going to happen.

    + lower the risk

    Lower the risk, the more shares you slap on.

    <b> You will know when you are ready to add shares </b>, when you add, it'll just be like second nature,

    you'll be taking as much as bid can offer or ask can offer. Cause you seen it before hundred of times and can practically draw out the next few candlesticks and know exactly what can go wrong.
  5. rwk


    Don't get caught up in position-size envy!

    Position size is only one component of risk. Price, especially volatility, is also important.

    I have found I trade better if I have an uncomfortably large position on, but not so big that I could get suddenly wiped out.

  6. good points, and I guess the size you choose is varied upon setups as certain setups looks more promising than others so you'd probably put on more...
  7. I set position sizes based upon percentage of portfolio...
  8. one blue one and it's 16 inches
  9. When I test a new method I start as small as possible. Sometimes I trade as little as 1 share. The idea is to test if the system has hidden flaws, not to make a big pile of cash. If the test appears good, then I increase the position size.

    I find it helpful to consider how my system behaves under the worst possible condition - a long continuing losing streak. If I can survive the long losing streak then I might have a system that I can feel comfortable actually trading my real money.

  10. Depends on how liquid the stock is. NYSE,AMEX, or NASDAQ?

    Sounds like your leveling in like you should. If you can make money with 100 or 200 size lots then you can make money with 1000 or 2000 size lots. It al l falls back on your money/risk management/percentage of stop...
    #10     Aug 11, 2006