How to prevent trading too big size?

[tenthousandmen]

"How to prevent trading too big size?"

do it by...not entering too many cotnracts.

if you have no self control after weeks of trying, go see a shrink.

 

[mokwit]

Quote from innovest_11:

I have the problem of trading too big size, or too many positions

So should i do the following:?

- convert margin account to cash account so that i will not buy too big?

- Or make my trading account smaller so that i cannot buy too big or open too many positions?

No need to proactively do anything. If you just keep trading too large the market will reduce your account size for you to the point where you are only able to put on small positions.

I'm afraid I am only half joking, maybe we all have to go through the shock of a big loss before we start trading smaller.

 

[simpletrade]

trader level 1/ $10,000 max daily position size $50 daily loss limit $100 min weeky target. trader level 2 $20,000 max daily position size $100 daily loss limit $100 min weekly target and so on, up to level 8 $250,000 max daily position size $1,250 daily loss limit $2,500 min weekly target . Advancement rules 2 consecutive weeks reaching min weekly profit target advances to the next level. 2 consecutive weeks with a net loss for the week, gets you demoted back to the previous level.

 

[Handle123]

Quote from innovest_11:

I have the problem of trading too big size, or too many positions

So should i do the following:?

- convert margin account to cash account so that i will not buy too big?

- Or make my trading account smaller so that i cannot buy too big or open too many positions?

Account size has nothing to do with experience, and experience MUST tell you what your backtesting/forward testing proves with min of 3000 sample size and ten years of data. If you can't know what your drawdown is over the course of up/down and no trends, you really can't know the answers to your questions.

Then if after you are having problems, at least you will be able to tell if they are system problems or emotional problems.

 

[macintash]

Quote from innovest_11:

I have the problem of trading too big size, or too many positions

So should i do the following:?

- convert margin account to cash account so that i will not buy too big?

- Or make my trading account smaller so that i cannot buy too big or open too many positions?

Going to cash account can make your life a lot easier depending on what you are trading.

 

[murray t turtle]

Quote from innovest_11:

I have the problem of trading too big size, or too many positions

So should i do the following:?

- convert margin account to cash account so that i will not buy too big?

- Or make my trading account smaller so that i cannot buy too big or open too many positions?

=============
InnTrend;
Yes;
yes.Good Jack Schwager top trader rule of thumb is 1%-5%/10% risk.

Another problem with leverage is its too easy to exceed that;
even more so when learning to trade.

One of the funniest replys [but power packed with truth] was to the question"" How do i keep the market from turning every time i enter my orders???
A[Answer =''Stop trading so big!

 

[jnbadger]

Quote from innovest_11:

I have the problem of trading too big size, or too many positions

So should i do the following:?

- convert margin account to cash account so that i will not buy too big?

- Or make my trading account smaller so that i cannot buy too big or open too many positions?

All of this simply sounds like a discipline problem to me. If you are asking these questions, then you already have an idea as to how much is too much, and you should naturally be staying below those levels.

The answer to your problem? Exercise some discipline and stop doing it. If you can't, then you have some underlying issues to deal with.

Switching account types or having your broker put limitations on you so you don't have to is the same as admitting there is something wrong.

 

[masterm1ne]

Quote from innovest_11:

I have the problem of trading too big size, or too many positions

So should i do the following:?

- convert margin account to cash account so that i will not buy too big?

- Or make my trading account smaller so that i cannot buy too big or open too many positions?

Distill all your beliefs about trading account size, position size and multiple positions, and follow these rules as they are absolute truth:

-Never risk ANY MORE THAN 5% of your equity on one trade.
-There is no need to take on more than 1 position at a time for reasons state below.
-Only AFTER you are profitable trading 1 contract/100 shares of a commodity/stock on that one instrument over AT LEAST 6 MONTHS, ONLY then increase size, and do so SLOWLY!
-Net a few points/dollars in your commodity/stock per day and you will effortlessly make enough money for anything you can think of.

Either follow these rules or take a cleaver and chop off your right hand, because that is cheaper than what you will lose trading.

 

[riskbiscuit]

I would definitely reduce the capital in my account. OR if you have a good broker you can ask him to have your trading size reduced so you'd be restricted to trade a number of contracts at one time. You're broker should do that if he care's about your account and not just his commissions.

 

[nursebee]

Changing account types and what not has nothing to do with the solution.

I would say you need to better understand risk management as it relates to position sizing. Van Tharp can guide you, as can others. I think the turtle books cover this, perhaps an ET sponsor could suggest the best book for this? If you fail to follow such precepts, by all means go see a shrink or get out of the game.

Risk of ruin is great!