When does one start trading big

[Neet]

Quote from saxon22:

9 to be precise. However, what is the probability of hitting 9 bad trades in a row?

How about 2 wrong and 1 right x a few ?

Sax, I don't mean any disrespect but sounds like you require more trading experience before making obvious flawless assumptions.

One more thing, when increasing your contract size, you are best doing it by scaling in. You will pay comission per contract, regardless of entry so why not just scale them in as the trade goes in your favor while tightening the stop.

 

[stock_trad3r]

You trade big wehn um..you have big money to trade with? I don;t see how else to answer that

 

[dandxg]

I am not sure this has been answered, as I don't have the time to read the entire thread. You trade big when you are consistently profitable trading small. For futures start with 1, move to to 2-3, 5, 10 so. It depends on what money management strategy you use optimal f, fixed ratio, etc. If you can't make money consistently with 1, then 10 ain't going help.

 

[volente_00]

Quote from dandxg:

I am not sure this has been answered, as I don't have the time to read the entire thread. You trade big when you are consistently profitable trading small. For futures start with 1, move to to 2-3, 5, 10 so. It depends on what money management strategy you use optimal f, fixed ratio, etc. If you can't make money consistently with 1, then 10 ain't going help.

I agree but I disagree. It is far easier to up the contracts than to up the points. Say your goal is $1000 a day. With only 1 contract you are not going to make 20 points a day consistently. But with 10 contracts there is a far better chance that you could net 2 points daily consistently.

 

[chauncey1]

Quote from whitster:

dood.

i am trying to save you from learning the lesson the hard way. most traders HAVE to learn it the hard way.


do what you will

Great remark.

I think the guy who posted the thread should experience some blood and huge drawdowns to see what we're talking about it.

A 50k should not be traded with 25 or 50 contracts (if allowed by the broker) unless you have 10,20 or 40 times that money as backup on another accounts.
Otherwise is gambling, not money management.

 

[trendo]

Quote from volente_00:

I agree but I disagree. It is far easier to up the contracts than to up the points. Say your goal is $1000 a day. With only 1 contract you are not going to make 20 points a day consistently. But with 10 contracts there is a far better chance that you could net 2 points daily consistently.

volente,

How far are you going to let a 10 contract position go against you?

 

[murray t turtle]

Quote from whitster:

dood.

i am trying to save you from learning the lesson the hard way. most traders HAVE to learn it the hard way.

apparently, so do you.

i didn't call YOU a moron. i said action X was moronic. it's kind of a loving the sinner, hating the sin thing. there is a difference between saying "you are a moron" and "that action you are planning on doing would be moronic"

huge difference.

there is a columbian proverb "one learns best with blood". it applies here. apparently, you need to learn with blood.

fwiw, i manage a pretty fair sum of OPM and have been very profitable, but no i don't live on a yacht somewhere. maybe in 5 years.

but i had to learn many lessons the hard way BEFORE i became profitable. i am trying to help you avoid that step. but arrogance will not help you.

i also run a business mentoring other traders. and NOTHING is more important than money management and discipline. and no, i don't call anybody a "moron". and those are most often the reason traders fail.

do what you will

===================
Saxon22;
Yes, ES contracts do move ''slow and steady'' as you wrote,
so i understand why it looks so logical/easy to trade much bigger size.

Frankly i dont trade 100 contracts but have traded ES contracts enough to see ''sharp & suddenly'' Fed day moves happen on non Fed days also. So things are not just limited to ''slow & steady'' And a reliable UPS[uniterruptded power supply] is NOT a prediction.

Yes part of trading could be compared to simply adding more passengers on a bus as you wrote;
but its really more complex like medical science/medical school & chart reading.

Non diversified over leveraged trading has produced some amazing returns to be sure;
& more frequently ,amazing blow ups also.
Wisdom is profitable to direct

 

[Neet]

It's all about money management.

Want to do 10+ contracts ? Go for it, but do it wisely.

ie: Start with 1 and add as the trade moves in your favor while trailing the stop

If you do the above with discipline and use your brains, if the trade goes against you, the trailing stop will not only secure profits but cover your butt.

 

[duard]

Psych.

1 to 5

back to 1 or 2

2 to 10

back to 3 or 4

4 to 20

back to 5 or 10

10 to 50

back to 20.


Why?

Because you need time to clean up the vomit when you puke your guts out on your first real "drawdown"

 

[illiquid]

Quote from volente_00:

I agree but I disagree. It is far easier to up the contracts than to up the points. Say your goal is $1000 a day. With only 1 contract you are not going to make 20 points a day consistently. But with 10 contracts there is a far better chance that you could net 2 points daily consistently.

I think that's upside-down. Setup determines risk/stop determines position size as function of account value. Dollar amount "goal" is incidental and less than useless.