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Matthew Bernstein

Why do I start losing when I increase my share size

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Matthew Bernstein

I've been trading off and on for a few years, and daily now for about eight months. I got my $25,000 account up to $40,000, keeping my share size relatively small (in the 100 share range). About eight weeks ago, i started increasing my share size to 200 or 300, trying to increase my profit and basically blew up my account (back down to $25,000 and change). I've had weeks where I was treading water and a couple of dismal weeks, the complete opposite of the slow, steady growth I was having before.  I was jumping into trades that weren't there, getting in to a trade too early or too late, revenge trading, etc.  My nerves also tend to get jangled as the share size goes up.  When I hit $25,000 mark I took a few days off, then dropped my share size back down, stopped trading the first five to ten minute of the open and started waiting for the trades to come to me instead of anxiously searching for trades and using my gut instead of clear setups.  I'm doing fine again - incremental, but steady growth-more up days than down days, etc. I feel much calmer and enjoy the trading again, but I want to figure out how to maintain that mindset as the account grows again.  Any thoughts?

Edited by Matthew Bernstein

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peterB

the sizing up needs to be deserved and by small increments so you get used to it going 100% more in size you are just not used to that kind of risk and do more emotional mistakes as you probably still count the money like with the old risk but ideally you should not feel the money difference before and after. size up in increments. if you get a green week /month then size up 20% or so. maybe you do not let your winners run maybe you get triggered

Edited by peterB

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