A simple way to improve your trading
The market tends to expose our every weakness. Whether it’s emotional
extremes, a lack of preparation, or simply being stubborn, trading will reveal
your Achilles’ heel.
One common mistake we all make from time to time is trading too large of a
position. This may be the case when an account is too small, or it may be a
product of the market you’re trading and whether ample liquidity is present to
allow for exits with minimal slippage. Sometimes trading too big can mean
trading your normal size in an erratic market. While there are several factors
involved in trading too large for your own good, focusing on realizing when
you’re trading too large can be quite helpful.
If you’re adding on trading size because you’re on the wrong side of a trade,
you’re trading too big. Why add fuel to the fire when you’re wrong? Compounding
one mistake with another will often lead to even worse performance, so focus on
working your way out of the first bad trade without adding to it.
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