Making Bigger Bets

Discussion in 'Options' started by Arnie Guitar, Aug 22, 2012.

  1. I guess I should really say "Taking bigger positions".

    As my account has grown through dumb luck, but mostly automatic bi weekly deposits, I'm still making the same size bets, actually sometimes smaller, and not trading as often.

    Sometimes I think it's out of tempting fate...I've been so lucky this year I figure the law of averages has to catch up with me.

    Has anyone else had trouble taking bigger positions as their account grew, and how did you deal with it?
     
  2. While it's logical to make larger size investments as the size of your account grows, that assumes you were already diversifying your stock investments to begin with.
     
  3. TskTsk

    TskTsk

    If your account keeps growing, naturally you need to make bigger bets for the same return %. If you want to compound or not is your choice. The financial risk in compounding is bigger in total but the same measured in % of acct
     
  4. I would look at increasing your position size, but you probably want to take more of a look into how to hedge. Becomes more important once your account grows imo.