“If you can’t sling around 80k shares than why bother?”- Trader Anonymous
On the desk this past week one Senior Trader hit 80k shares for a scalp and a few junior guys giggled at seeing a trader take such size.
It was a scalp.
And it was a scalp in a stock under $2.
So let’s put the size in perspective.
But it does help illustrate an idea, a trick, I have observed has helped successful traders trade bigger.
I have seen trading bigger with large size in cheap stocks help traders, who control their risk, trade bigger in all of their positions.
I have written in The PlayBook about a better way to trade bigger. But it doesn’t work for all traders. And this trick of trading larger in cheaper stocks, I have observed jumpstart a trader into larger size for all trades.
Again a better way to add size is to think in percentages. How much do you want to risk on each trade relative to your stop loss? Have success in these percentage terms and then just increase your capital. But I have noticed that this does not work for all traders for various reasons. And some need a jumpstart.
So if you are controlling risk well, trading with edge, working to trade bigger but stalling, then consider this trick.
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Trading bigger is much easier than trading with edge
*no relevant positions
