Home > Lessons from the trading floor > $knowing when to trade bigger size

$knowing when to trade bigger size

Do you know how to tell the difference between a 500 share trade and a 10,000 share trade?

Trading big size is every traders dream. “Load the boat on every idea! Let’s make a killing!”

Do you trade every scenario the same way? In other words does every bull or bear flag look the same to you? Does every breakout or breakdown tell you the same story or how you should trade it?

Understanding how to develop scenarios and assign a risk reward to a trade BEFORE you place the trade is one of the most important skills to learn in order to propel your career in to the next level of trading profits.

In my opinion this is one of the most important concepts NOT included in most trading books and training programs.

If you are trading like a professional you must know WHEN to size up and how to do it. In other words you must ask yourself the question: If I could trade 10,000 shares on this trade, would I?”

How often do high probability trades with low risk come across your desk on a regular basis?

All of our full time traders and potential traders enrolled in our Keystone 20 program are taught from the first day to assess how obvious the edge for a particular scenario.

Only when you can assess the difference between a great/very obvious edge from everything else can you understand how to use leverage. This will also set the tone for trade duration and stop loss.

As a veteran trader I can tell you that 65% of the month you will have “less than obvious” staring you in the face; which means one bull flag may not have the same trade expectation as another. One breakout should be entred and managed differently from another.

If you want to earn consistent money as a trader your trading plan must have a checklist of the pieces that will tell you to expect more or less from a trade set up.

Some of these include: Market internals, sector strength/weakness, daily volume, major indices technical set up, order flow analysis from the last two-twenty days. The list can go on and on.

It can be as long as you want (which will result in fewer trades) or as short as you want (which probably means you are scalping).

If you want to learn how to trade big and make the big money you must train yourself NOW to understand every scenario is not the same, and then ask the question “would I trade 10,000 shares if I could?”

When you actually pay attention to the answer and write the reasons for yes or no in your TRADING JOURNAL you will  be closer to the big time.

Free training video and EBOOK click here

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  1. Mike
    August 19, 2009 at 8:52 pm

    The EBOOK is excellent, highly recommend it.

  2. August 19, 2009 at 9:39 pm

    Trade Intensity is important. There is no room in your mind for negative thoughts. The busier you keep yourself with building “If,Then” scenarios, the less chance your mind has to dwell on the emotional. This is Trade Intensity!

    • August 20, 2009 at 7:22 am

      Very well said Dom and a good thought process to work on for new traders

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