Adjust These BAD Trading Habits Now Whilst You Are Trading Small!

by birtanpublished on August 24, 2020

In this video traders we're going to look at address these trading habits now whilst you are trading small because when you start to scale up your position size these won't be so forgiving stay tuned hey traders welcome to you all right so

These are some of the things that you really need to get on top of now and address now because when you start to trade more size man these get amplified tenfold you

Might think that they're okay now and you might think that they're gonna be a little bit worse but it's almost like it gets ramped right up as soon as you start to scale up into bigger sizes more meaningful

And more what you're trying to trade so you know it's the kind of thing that nip in the bud now or the damage is relatively small and you're kind of in that phase of trading relatively small before

You start to turn up the wick on the risk because once you do that it's too late and you'll end up making a mess of things some of the things that come to mind

And guys you know if you've got any if you're in the phase of maybe looking to scale up your position size increase things a little bit this is perfect for you in the comments section below always interested to hear

What you guys i've got to say okay so not sticking to your stop or moving it might seem like a beginner mistake but from time to time maybe you do it maybe you just move that stop a little bit

Maybe you go you know what i'll just take that out there just see how it trades there it's not so much that act it's the doing it on the fly that's damaging you might be okay doing it now when

You're down a couple hundred bucks but if you're down 10 20 grand on the trade and you're doing it you're going to feel much more pressure when you're now down 30 grand on the trade

You know the difference between 200 and 300 might be oh i shouldn't have done that and you kind of take the stop out or you hold it comes back but you'll be trading from completely different mindset if that's

Ten grand extra on the line than a hundred dollars so just be careful about you know doing these things that affect the risk especially the risk on the fly i.e moving the stop now and

If it's in your plan that says you can move your stop under certain parameters or have some restriction or stop and have a kind of safety net stop fine you know your plans your plan that's excellent

But it's doing things on impulse that's the deadly part of it number two is breaking rules you set for yourself so we all know this right this is nothing new and revolutionary here

But it's some the kind of thing that you need to have locked down absolutely solid before you even think about scaling up if you've got an issue with your discipline and your rule breaking while

You're in a kind of moderate position size it's going to smash you around the face with the baseball bat if you increase your position size because the

Emotions are just heightened as we said you need to think about the order of magnitude of money you're starting out you're trading color 100 bucks risk here and there or whatever it is 20 bucks 200 bucks doesn't matter you

Start ramping that up to 10 times that over time it's not gonna be so forgiving if you're breaking rules about over trading that could cost you 50 grand you're breaking rules about over 20 now cost

You 500 bucks you're like 500 bucks but this is the point you know you can shrug it off because you think you're okay with it and all you can see is your bottom line going up but you don't notice the

Landmines that are sitting away to get you in your trading strategy that will you will step on when you start to increase your position sites which watch out for that

Rule breaking and i'll go through it so many times because it's so so important of the discipline aspect there's plenty of resources out there on the channel for you

If you want to kind of do some more uh digging into that third thing is taking too much risk for trade easily done easily done you kind of see it you take it and because you're working on a moderate

Position size even a double risk your car you know it's not the end of the world that but again just think about how that will be if you you add you know 10 grand to 20 grand risk that

Might be quite significant especially if you know this trade goes against you have a couple of those in a row suddenly down 40 grand were you expecting that no maybe 20 was your max nay down 40. that's quite a lot

Of difference even even though percentage-wise is the same from being 200 to 400 bucks but it's the order of magnitude or the actual money that creates the difference in your mind

The way you think about it uh training for fun if you are the type of person that sits down at the screen has a punch so to speak it's not going to work because you're going to get caught in a trade that you

Didn't want to be in you'll instantly regret being in it i wish i hadn't taken this i just sat down it wasn't part of my rules i thought i'd just take a quick trade for fun you're down 50 grand on the trade and

It's stinging and you just hate yourself for doing it you hate the fact that you've not done done all that hard work it's just a horrible thing to do so just eliminate it you're not trading for

Fun now listen no point not saying it shouldn't be enjoyable trading because it's enjoyable the enjoyable process but you know what i mean sitting down picking a market having a stab at something taking a

Swing of the bat just because you feel like it eliminate that now because that won't serve you when you've got some decent cash on the line fifth thing is not respecting event

Event risk maybe you've held price or trade should i say over non-farm payrolls maybe you've held them over um earnings if it's a stock maybe you've held it over the weekend maybe you've got away with it and maybe

It's part of your strategy but you know one time you get caught out doing that with size you could be down 200 grand you could be down a serious amount you know you might get away with it now

And then or you might have not even had a time when you've been hit by it but it's again you've got to you know really respect that event risk because that can really do some damage

If you're trading besides and you think i know what i've never been hitting non-farm perils before all of a sudden bang their well-out line rips up and you're getting smashed or earning suddenly out of line that you're

Not expecting so respect that event risk overnight risk or the binary risk that we've got the fifth thing is oh six things sorry guys it's doing zero reflection and trade analysis maybe you've got so far

Uh in the moment by doing a little bit of analysis but if you've not done any you need to kind of look and see what you're actually doing you hate to say it but you could have got a big chunk of your profits from just luck

You know you have to be objective with cinco well if i'm going to start putting serious money on the line i need to be 100 certain not only from a logical perspective but from a confidence perspective

That what i'm doing is as a result of my skill not a result of kind of just some luck and i've just got luck in a few trays and i'm riding that luck and i think i'm a genius

Sometimes it's hard it's pill to swallow but if you do the analysis think you know what maybe i've got lucky in those trades maybe i need to just stay where i am small just to prove this a little bit

Longer before i start dialing up the risk because if you're dialing up the risk and you've been riding just on luck and listen because you need some luck in training of course you do

Uh it's part of the deal but if it's been more of a significant reason for your p l than skill and then consistency then it could work against you as well but and the rule of the market is guys

It probably will work against you just when you're your maximum position size the second thing is trading your way out of a losing hole so if you're down a lot and you feel like you're

Trading your way out of it that's a really bad habit because again when you start to turn up the amp amplification on the p l and the position size it just hurts so much more you're down a

Hole you consider a whole a intraday let's say a couple of grand down you're like oh you know i didn't want to lose 300 bucks you're down two grand

You can stomach that but when you start going that order of magnitude you're supposed to be down 20 you're now down 300 that really hurts and that really is not a place to be because you're close to

Kind of really doing some significant damage to your account so if you kind of had a couple of those we've got you've got out of it treaded out of it just be very very careful that you don't do that again because

It's not representative of how you're going to trade you're probably not going to dig yourself out of a hole you'll probably give up on it way before it hits that kind of level you won't be able to trade

The size you might have the margin so many reasons why and so you know it's not a case of just taking your results from that and 10xing them because there's little things these little dangerous habits

That might sit in there and might be lurking to kind of cause you a problem so if you're thinking of scaling up just be careful look through your habits make sure be honest reflective with it

And just say hey is this good trading is all the things how am i doing and if you've got some of these just take some more time to deal with them deal with them and then move on to the

Scaling up and also guys finally it's not a video about this but if you are increasing your position so do it slowly don't go from one to ten times because that's a surefire way to kind of really hurt you just take it

Steady steady steadily steady anyway whatever you're doing take care guys don't forget to check out the channel sponsor the link to the description below take care bye


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