• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Locke In Your Success

Locke In Your Success

Learn how to create income from options trading

  • Home
    • About
    • Testimonials
    • Our Team
      • Sherri Locke
      • Stephen Hammit
      • John Locke
    • Contact
    • Privacy Policy
  • Coaching
    • Fundamentals In Trading Library
    • Options Trading for Income Weekly Webinar
    • GO Ask A Trader Sessions
    • Trading With The Pros
    • Trading Performance Sessions
    • Market Outlook Weekly Webinars
    • Personal Coaching Sessions
  • Become A Member
    • GO Membership
    • PRO Membership
    • Trading Performance Membership
    • Market Outlook Membership
    • Basic Membership
    • Membership Level Comparison
    • Trade Alert Services
  • Trading Courses
    • Options Trading Strategies
      • The Bull
      • Quick & Dirty Broken Wing Butterfly
      • The Super Bull
      • The Bear
      • Unbalanced Butterfly 1 and 2
      • M3.4u
      • V32
      • X4 System
      • Bearish Butterfly
      • M3
      • The ROCK
      • M21 System
    • Trading Performance Courses
      • Advanced Personal and Position Management
      • Broken Wing Butterfly Master Course
      • The Trading Triangle
      • Trader Transformation Workshop
      • Ultimate Income Trader Workshop
      • How To Best Utilize Calendar Spreads
    • Enriching Sessions
      • Performance Parking Portfolio
      • Boost Trading Results Through Proper Back Testing
      • Managing Risk When Entering, Exiting, or Rolling Positions
      • Far Out M3
      • How To Build Winning Trade Plans
      • Reading Your T+0 Line
      • Trading Lab – Design a Trade
      • Trading Lab – M3LT
      • ROCK’in 2018
      • Trading Lab – Roll Baby Roll Index
  • FREE Resources
    • Free Options Trading Consultation
    • Options Trading FAQ
    • Trading Performance Podcast
    • The Winning Trade
    • Successful Trader Presentations
    • TRADING SUCCESS BLUEPRINT
    • FREE Basic Membership
    • Calendar
    • Recommended Reading List
    • Brokerage Firm Selection Process
    • Fundamentals In Trading Definitions
    • Trader Inspiration
    • Financial Freedom Classroom
  • Blog
  • Log In

When to Increase Your Position Size

May 27, 2021 by Jenica Holzschuh Leave a Comment

When To Increase Your Position Size - Trading Performance Podcast Episode 47

How do you determine when to increase your position size? In this episode, John and Stephen discuss the many aspects to consider before increasing your trading size and how your sizing strategy can affect your returns.

Click here or in the video below to learn more!

Subscribe: YouTube

Locke In Your Success · When To Increase Your Position Size

Subscribe: Soundcloud


Trading Challenges

Many traders lose money because of how their position sizing strategy interacts with the larger context of their trading plan. Most traders will start small. If they lose, they change strategies. If they win, they increase size based on the frequency of their wins. When they inevitably lose, they decrease size and start the process over again. This results in losing money, regardless of the actual trading strategy.

When To Increase Your Position Size - Trading Performance Podcast Episode 47

The Negative Mental Loop

Losing is a part of trading. Keeping a good mental game in situations where you lose is key. If your mental game is off, you could be throwing away the best trading strategy simply based on luck rather than evaluating the trade for what it really is. Regardless of your trading strategy, you will always run through cycles of wins and losses. The way you handle the wins and losses is what will determine if you are ultimately profitable.

Financial and Mental Risk

When you trade, there are two types of risk: financial and mental. Ideally, you should be able to take 3 consecutive losses and continue to move forward without decreasing position size or temptation to switch strategies. If you are unable to do so, you may be basing the quality of your strategy off of luck-driven, short-term results. There is no faith in the trading strategy. If you understand your strategy and its current edge in the marketplace, then you should not be decreasing your position size based on recent losses.

The Bottom Line

Be very careful evaluating when to increase your position size. Do not be fearful of losses, and be prepared to lose. If you are not prepared for the amount you could lose, your trading size is too large.

Click here or below to join the mailing list to receive each Trading Performance Podcast by email. Don’t miss an episode!

Join now button to receive emails of the Trading Performance Podcast
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Email this to someone
email

Filed Under: Trading Performance Podcast, Trading Psychology Tagged With: capital, capital levels, money management, psychology, Psychology of trading, The mental game of trading, trader psychology, Trading, trading capital, Trading psychology, trading tips, wealth building

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Recent Posts

  • Stock Market Emotions!
  • The Winning Trade Episode 83
  • Trading Reality Distortion
  • The Winning Trade Episode 82
  • Stock Market Ups and Downs

Categories

Search

Copyright © 2022 · Locke In Your Success, LLC. All rights reserved worldwide · Site Maintained by Nustart Solutions