How to bring it to the next level

J

jedwards

My discretionary trading has been getting better over the last year, and more consistent. I've been able to keep my winners longer and get rid of my losers quicker. And I've been able to take decent risks without going too crazy, and only make a couple of mistakes. I've very familiar now with the trading style that suits me, and how to trade in my comfort zone.

So my question is, how do I bring my trading up another level? I usually buy options, and about the most I can handle without getting too nervous is 10 contracts. Also, when my profits reach around a 1000-2000 on any single trade, I usually get the urge to pull the trigger and close it out, instead of trying to ride my position higher.

What is the trick to start scaling up the size of the trades? Do I just go for it and trade 20 contracts, or is there some other technique I can use to scale up my trades to help me handle more risk and hopefully more reward?
 
Quote from jedwards:

My discretionary trading has been getting better over the last year, and more consistent. I've been able to keep my winners longer and get rid of my losers quicker. And I've been able to take decent risks without going too crazy, and only make a couple of mistakes. I've very familiar now with the trading style that suits me, and how to trade in my comfort zone.

So my question is, how do I bring my trading up another level? I usually buy options, and about the most I can handle without getting too nervous is 10 contracts. Also, when my profits reach around a 1000-2000 on any single trade, I usually get the urge to pull the trigger and close it out, instead of trying to ride my position higher.

What is the trick to start scaling up the size of the trades? Do I just go for it and trade 20 contracts, or is there some other technique I can use to scale up my trades to help me handle more risk and hopefully more reward?
More...

I would move up a little slower. Remember, going from 10 to 12 is a 20% increase. Take it slow, you should feel a little nervous when you trade, but not scared.
 
Quote from jedwards:

...the most I can handle without getting too nervous is 10 contracts...

What is the trick to start scaling up the size of the trades? Do I just go for it and trade 20 contracts, or is there some other technique I can use to scale up my trades to help me handle more risk and hopefully more reward?
More...

You've already stated the "most I can handle without getting too nervous is 10 contracts". Therefore, you're not ready to go from 10 contracts to 20 contracts via your own words.

I would suggest you start slowly...increase 1 contract per 1 - 2 months. That's enough time to psychologically get use to the position size increases without freaking out.
 
Quote from jedwards:

...
What is the trick to start scaling up the size of the trades?...
More...

(a) Make sure you're account is capitalised enough to trade more contracts (and to suffer the bigger drawdowns that come with more contracts)
(b) Don't think of it as money, instead just as a number (easier to do with OPM, "Other People's Money", and also easier in a well capitalized account ...)
 
Take all your winnings, and accumulated wealth, mortgage yourself to the maximum, borrow all you can from family and friends, and then BET-IT-ALL on black. Make sure you win before you place the bet.

Anybody who is anybody in this business has done the above, at least twice in their life.

The alternative is to be a mediocre piker forever.
 
Quote from jedwards:

...So my question is, how do I bring my trading up another level? I usually buy options, and about the most I can handle without getting too nervous is 10 contracts...

...What is the trick to start scaling up the size of the trades? Do I just go for it and trade 20 contracts, or is there some other technique I can use to scale up my trades to help me handle more risk and hopefully more reward?
More...
Seriously?

Maybe you should consider how you progressively managed to size up to 10 to determine how you should progressively size up beyond 10, don't you think? Why would the rationale change? Stated differently, how did you manage to get to 10 without figuring out how you got to 10?
 
Thanks everyone. I think I'll take the majority opinion and scale up 1 contract per month or so. That's the most rational way of doing it. I have never gone on margin in my life while trading with stocks and options (only futures), so blowing up my account that way isn't going to occur. There are so many other ways to blow up my account... :D
 
Quote from Brass:

Seriously?

Maybe you should consider how you progressively managed to size up to 10 to determine how you should progressively size up beyond 10, don't you think? Why would the rationale change? Stated differently, how did you manage to get to 10 without figuring out how you got to 10?
More...

I got to 10 by literally just going for it and being terrified, but trying to keep my emotions in check. With 10 contracts, a move in the opposite direction for me translates usually to about $500-1000 loss which hurts but I can stomach.

But if I take the same tactic with 20 contracts, now it's getting up to a psychological level in terms of both profits and losses that I can't seem to get through, about $1000-2000, so I guess the best way is to just chip away at it by slowly growing my size.
 
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