Home > Lessons from the trading floor > $The silent trader killer

$The silent trader killer

Whether you trade $RIMM or a slow mover like $MSFT you must use leverage properly.

One of the most common killers to a potentially good trader’s career is misuse of leverage. A good trader will always be aware of the environment they are in before they choose a share size for the trade.

A big mistake is to trade the same share size no matter the volatility, this is a huge mistake.

Adjust share size to compensate for liquidity and volatility so you can let the good trade breathe to become big winners and if they don’t work you will have a reasonable loss because of the size of your position

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