After A Convo With An Extremely Hard-Working Mentee Yesterday Who Struggles With Swings In Performance, I Figured Most Will Benefit From Re Mentioning This
After a convo with an extremely hard-working mentee yesterday who struggles with swings in performance, i figured most will benefit from re mentioning this. Take.. your.. motherfucking time!! You have to EARN the right to size up. The market isn’t going anywhere, TRUST ME.!! https://twitter.com/team3dstocks/status/1181705943094042625
A few successful trades in a row is NOT an excuse to size up prematurely.
A “hot market” is NOT an excuse to size up.
ppl look at the reward, but ignore the risk.
The reward? your PNL graph goes parabolic.
The risk? u take a loss u’re NOT psychologically ready for yet
and trust me, the psychological effects of a large loss are WAY more devastating than the monetary effect. Why? b/c although the monetary damage is instant, the mental damage is longer lasting, affecting ALL your future trades. The domino effect that results is just not worth it
That is why I get so sick to my stomach when I see bullshit PNL marketing. It makes traders at different stages of their journey feel like they’re not good enough. that they HAVE to catchup. that they have to bank daily. They think “i work just as hard, why am i not there yet”?
So they fuckup a perfectly reasonable uptrending PNL chart by pushing size early, just so they can “catchup with the rest of twitter”. FUCK THE REST OF TWITTER. That’s not your measuring stick. 30% of them are papertraders anyway, the other 30% manipulate what they post.
Your ONLY measuring stick should be your overall trading expectancy.
Is your average risk/reward increasing each month? from 2:1 to 3:1 etc?
or is your win rate increasing while your RR is staying the same?
Then YOU ARE MAKING PROGRESS. Everything else means jack shit.
In conclusion, unless you can average AT LEAST a 50% win rate each month, with at LEAST a 2:1 risk/reward, over at least 20 trades in a row, then YOU ARE NOT MENTALLY READY TO SIZE UP. Period.
good luck, and may the god of risk management be with thy cunt self