Proper position sizing for your trading

BellaMike Bellafiore's (Bella's) BlogsLeave a Comment


I want to start off by thanking you for all of the material you present through your blog and your book.  I look forward to your next book, I already have it pre-ordered on Amazon.  I feel like I get more educational material from the SMB Blog than I get from my own prop firm in Chicago.  I started trading a few months ago and am really working hard at improving every day and eliminating my mistakes.  However, I still am having trouble stopping myself from over trading.  I have been trying to focus on this for a while now, but I am struggling with it.  Some days I come in and trade great, yet others I throw around way too many shares, and find myself in far too many trades I shouldn’t be in.  Since you have so much experience with young traders, and I’m sure some of them have the same problem I am having, I am curious if you have any advice, techniques, or strategies to keep myself in check while I am trading.  I feel like this is not a great question to ask, but I know this is something stopping me from reaching my full potential as a trader.  I know that there is a simple solution to it, but when I’m trading real time, I have a lot of trouble dealing with it.  Any suggestions you have will be greatly appreciated.  I hope this isn’t just a remedial question and there are things that I can do to help me work on this.  Thanks again, I look forward to watching the next trade review, or reading the next blog post on your site.  I also am really excited for your next book.


I had a conversation with some of our young traders who need to get bigger in some trades.  My suggestions to them are my suggestions to you.  You must be able to discern your great trades from your good trades and your good trades from your bad.

Try this.  Make a list of your A+ trades.  Then create a rule of risking 30 percent of your intraday loss on these plays.  For your lesser trades develop a rule to risk less.  You should not arbitrarily be choosing your position size.

I hope that helps.


One Good Trade


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