you talking about a smurf horse penis? :eek:
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Just starting, how do you guys size up?
- Thread starter FastandFurious
- Start date
you talking about a smurf horse penis? :eek:
Pckage sizes depends a lot on the equity you're trading.
Let me explain.
If you're trading GE or PFE, then you can easily scale up to several thousand shares with no problem, you'll be just another one in the bunch... But if you're trading TOL or XOM, you probably dont want to have more than a few hundreth shares at a time. Why? It'll take you too long to get in\out of positions, and that's no good when scalping. You can check the island book for the stock you're trading, get an idea of how big are the regular guys trading the stock, and try to trade smaller than them for starters... when you start getting more experience, move into being a bigger fish, but try not to be the biggest fish in the pond... at least till you have the experience to eat any other fish that comes around... You want to trade with the size you know you can get rid off real fast when things go real bad, without taking too much of a loss.
Let me explain.
If you're trading GE or PFE, then you can easily scale up to several thousand shares with no problem, you'll be just another one in the bunch... But if you're trading TOL or XOM, you probably dont want to have more than a few hundreth shares at a time. Why? It'll take you too long to get in\out of positions, and that's no good when scalping. You can check the island book for the stock you're trading, get an idea of how big are the regular guys trading the stock, and try to trade smaller than them for starters... when you start getting more experience, move into being a bigger fish, but try not to be the biggest fish in the pond... at least till you have the experience to eat any other fish that comes around... You want to trade with the size you know you can get rid off real fast when things go real bad, without taking too much of a loss.
Quote from eusdaiki:
Pckage sizes depends a lot on the equity you're trading.
Let me explain.
If you're trading GE or PFE, then you can easily scale up to several thousand shares with no problem, you'll be just another one in the bunch... But if you're trading TOL or XOM, you probably dont want to have more than a few hundreth shares at a time. Why? It'll take you too long to get in\out of positions, and that's no good when scalping. You can check the island book for the stock you're trading, get an idea of how big are the regular guys trading the stock, and try to trade smaller than them for starters... when you start getting more experience, move into being a bigger fish, but try not to be the biggest fish in the pond... at least till you have the experience to eat any other fish that comes around... You want to trade with the size you know you can get rid off real fast when things go real bad, without taking too much of a loss.
good point...volume and relative size.
Quote from FastandFurious:
How do you guys progress from moving up in lots as you learn? How do you feel physcologically or is it something that you just have to get use to, and once you know it, 200 lots is nothing...?
How do you guys progress? Do you go...100, 200, 400, 600, 800, 1000?
You don't size up if you are losing money, but if you are consistently making money (or even breaking even when you first start) then you should size up.
I was nervous trading 100, 200, 400, 600, 800, 1000, etc.. shs at one point. It took me about 3 - 4 months to get to 1000 shs. But each person is different. Up until 3 months ago I was nervous to trade 2000 shs. Now sometimes I trade 4000 shs and I am a scared rabbit , hopefully I can get past this level in time and size up to even more shares to get to Rearden's level. The bottom line is that you have to constantly push yourself to get to the next level.
Quote from rjv27:
You don't size up if you are losing money, but if you are consistently making money (or even breaking even when you first start) then you should size up.
I was nervous trading 100, 200, 400, 600, 800, 1000, etc.. shs at one point. It took me about 3 - 4 months to get to 1000 shs. But each person is different. Up until 3 months ago I was nervous to trade 2000 shs. Now sometimes I trade 4000 shs and I am a scared rabbit , hopefully I can get past this level in time and size up to even more shares to get to Rearden's level. The bottom line is that you have to constantly push yourself to get to the next level.
I agree fully. Constantly pushing myself.
It's tough to think when you are trading markets liquid enough that it doesn't matter if you're trading 10x the size that you are, the trade is the same. So the temptation becomes, why not?
I'm sure there are certain traders that can elevate their size in geometric fashion without skipping a beat, but for me it seems to be a relatively slow process in getting used to larger numbers (again). Too much mental scar tissue perhaps.
I'm sure there are certain traders that can elevate their size in geometric fashion without skipping a beat, but for me it seems to be a relatively slow process in getting used to larger numbers (again). Too much mental scar tissue perhaps.
Quote from FastandFurious:
Well, I'm scalping and currently, I have just been trading 100 lots. For the past week, I've tired 200 lots and want to be consistent trading 200 lots because I want to have progress, but moving from 100 lots to 200 lots is not that big of a change but the numbers (profit/loss) is x2 so I'm still a little anxious, nervous as if I lose, I will lose twice as much...
How do you guys progress from moving up in lots as you learn? How do you feel physcologically or is it something that you just have to get use to, and once you know it, 200 lots is nothing...?
How do you guys progress? Do you go...100, 200, 400, 600, 800, 1000?
i usually trade in 100 share lots, i just started daytrading/swingtrading thats why im trading between 100-200 shares. Sometimes I may trade 500-1000 shares depending on how oversold the market is.
Who do you use to trade??? I switched from scottrade to mbtrading and trading has been alot easier knowing im not paying $7 to buy and $7 to sell rather 0.01 a share.
Trade mostly ETFs and techs.
Some are DXD, QLD, QID, PIV, PSI, PHO, EWZ, EEM, USO, GLD, HHH, SMH, SDS.
Quote from illiquid:
It's tough to think when you are trading markets liquid enough that it doesn't matter if you're trading 10x the size that you are, the trade is the same. So the temptation becomes, why not?
I'm sure there are certain traders that can elevate their size in geometric fashion without skipping a beat, but for me it seems to be a relatively slow process in getting used to larger numbers (again). Too much mental scar tissue perhaps.
see that's the thing, if I see a setup that is high probability to me, I have no problem of throwing 100 shares down as I have seen that over and over with 100 shares. but if I choose even 200 hundred shares, my heart beats a little faster, the stress level increases and in turn hesitates me to make the trade as in my head I keep saying, you're gonna have to get use to trading more size if there's progression but at the same time, just throw the 100 shares and make a few cents...
hey. The thing is, dont think in $, think in cents... when you scale up to 200, do it from the begginning of the day... if you wait for a super safe setup to use the 200 it may happen that it goes wrong and you have to get it back on 100 shares. As a rule of thumb I never increase trading size more than 20% in one day... from my usual volume on a stock... but when you´re trading 100 shares you dont have a choice, you gotta increase 100% is probably one of the hardest steps in the road to becoming a trader...
the real problem with large size comes not when you´re winning, that´s the part we all like... the problem is when things go wrong... knowing how to get out withing your risk management rules...
the real problem with large size comes not when you´re winning, that´s the part we all like... the problem is when things go wrong... knowing how to get out withing your risk management rules...