I sit in a unique seat in the trading community.  For the past decade, I have trained traders from new to consistently profitable or failed trader.  As the author of two trading books, gratefully many reach out to me sharing their trading challenges and triumphs with the why and how.  What I do in my writing is share my observations from working with and exchanges with these new and developing and high performing traders to our trading community.

Another one of our firm traders had a break through last month!

He walked across that line from doubting developing trader to professional trader.  He is going to make it.  He will be a professional trader.  His results are too solid for another result.

The question now will be how good and how quickly.  The challenge now will be mostly sizing in his trades with edge.

During his monthly review this trader identified a sizing challenge that I often see with developing, consistently profitable, high performing and seven-figure traders.  Straddling that fine line between being aggressive when their trade with edge appears and forcing size when their trade is not quite there.

Often traders take a half step back with their trading, while increasing their sizing.  Often this is an issue of patience.  Of increasing size in trades that are not quite ready.  Of increasing size at prices not offering a good risk/reward.  Of increasing size in trades not on your A+ trade list.  The trader is so ready to add size they fail to add size at the appropriate time.  They fail to be patient with entry.

Here is our trader’s thoughts on his challenge to improve sizing this month and in response to his trading coach.

Hey – totally agree with the two things that I should focus on to get to the next level and that the thing keeping it all together is patience (letting ideas come to me). I definitely fall into the habit of forcing things when I am focusing on trading bigger – this is the case with how I traded dwti this week – I knew the trade was near and in my head I wanted to have 500-1000 shares when it started working depending on the setup but instead of letting it come to me and waiting for a real crack I had fomo and wanted to make it happen all at once so I didn’t let it dictate how I should trade it/when I should take profits or size up/down, etc..I was a bit stuck mentally. I notice that when trading right outside of my comfort zone I sometimes feel this way and just a little more unsure than I would normally be about where my levels are. This leads to second guessing myself while trying the play one or two too many times, so I want to try to be very clear with myself about where my levels are before.

Generally you are reinforcing the thoughts I have been having and the things that I am trying to stay focused on, I am prepared to push it harder at the right times and continue to step everything up gradually. I know there will be growing pains with the process but I feel like I am learning better how to get the best progress as well as keep my consistency and not make the dumb mistakes that I feel I am beyond.

Thanks for the feedback – I see it and I’m believe it more every day!!

Taking that next step in sizing requires you to be prepared to trade bigger, but patient to wait for it to arrive.  It is an odd combination of patience and aggression.  But one without the other breeds a lesser trader.  Both combined leads you to your best trader.

*no relevant positions

 

 

On Wex