Tips to Trade BiggerJan 11th, 2013 | By Bella | Category: Mike Bellafiore's (Bella's) Blogs
Good evening! I really enjoyed the webinar this evening, that was some good stuff. Lots of good nuggets in there that are practical and applicable.
I’ve really been thinking a lot lately about getting bigger responsibly in those key spots where you just HAVE to get bigger and take size. Trying to be harder on myself for not extracting as much as possible out of the marketplace when the stars are lined up in my favor. The biggest mental hurdle I face with sizing up is taking on that increased risk. In the past I’ve also had more of a swing mindset, so I’m not used to hitting out of a stock if it moves 5cents-10cents against me, so there is some mental adjustments I need to make when I’m in that kind of tight stop daytrade play.
I’m looking to “co-opt” some daytrade plays and add them to my arsenal of trading setups, and supplement my overnight and 2 and 3 day holds with some smart daytrades. Like I said, the biggest hurdle I face when I have an A+ opportunity is taking on that increased risk. Often I even know it’s one of those times, and still am having trouble breaking through that barrier. What are some tips you may have to help me and others like me dealing with this mental hurdle?
Thanks for the time!….
Tips to trade bigger
1. Develop your PlayBook, setups that make the most sense to you
2. Then from this PlayBook, extract A+ setups, the best of the best trades for you
3. Risk 30 percent of your intraday loss on these A+ setups if a day or swing trader or 2-5 percent if you are
a longer term trader
4. Consider how you can find more of your A+ set ups with tools and your trading environment
5. From a previous blog post, Ten Takeaways from an elite trading coach on how to be a successful trader, :Successful traders avoid thinking in dollar terms, they standardize in terms of percentages to measure performance as well as put on risk.
6. Visualize trading bigger as this will help you execute in real-time
7. Get bigger gradually as too quickly will hinder your overall trading progress. For example, Seth Freudberg, who runs The SMB Options Tribe, has a schedule for bumping up his options traders by month. By the end of three years the goal is for them to be trading a 5 million dollar account.
I hope that helps.
Keep working on your trading game.