An anecdote from a developing trader on the prop desk- sizing

One of our developing traders is consistently profitable.  Undeniably, he trades with edge.

This is a great position to be in.  But for some traders it is not sufficient.  They are making money, but they are not making enough.  And when you are sitting next to and behind 7-figure traders it is not enough.

So this trader sought to trade bigger.  He has edge.  He is not making as much as he should nor wants. So the solution for this trader logically was just to trade bigger.

That did not go well last month.

Why?

This trader made a common mistake of developing traders in how he sought to increase his size.  He was too big in too many trades.  He was not just getting bigger when in his best traders, but all trades. Trading bigger then was not the path to making more.

We had a nice chat about his monthly review and attacking this trading issue.  This trader was armed with answers.  They might provide a blueprint for you to improve your sizing:

  1. Trader will outline his A+ setups.
  2. Trader will focus on adding size in these A+ setups.
  3. Trade will not size up in other traders.
  4. Trader will share a report card with his Team Leader, Dr. Steenbarger and me on sizing daily.

One goal at a time given hyper focus is a best practice for trader improvement.  For this trader, at this time, on this month, that will be sizing, with feedback from market veterans.

As always, your feedback/questions are welcome at [email protected]

*no relevant positions

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