bb01100100 wrote:IgazI wrote:A fractional position is like a pufferfish; you make yourself really large so as to not get eaten, and then you shrink to size when you are out of danger.
Some people just see: small size, more movement, same risk, less profit, but this is a very short-sighted way to look at it; not losing your bank is step #1 of making money, you can't just skip to step #2 and think that everything is going to turn out ok.
Hello; are you referring to trading higher timeframes or something else? I was literally thinking about this just now.. larger timeframe, smaller size over larger space and longer waiting times. Not in a negative sense, more in terms of "ok, that's how it is, so how do you adapt to that?"
I'm still thinking about what you said a while back .. "price has moved hundreds of pips so why haven't you made hundreds of pips?"
It's a given that I am taking note of the weekly, looking to trade the H4, and using M1 to reduce risk.
A fractional position, like 2 of 5 contracts, can absord 2.5x larger swings for the same fixed amount of currency risk; by trading smaller, you have "made yourself larger".
Intsead of worrying about getting taken out on a random price-spike, or turning pale in the face of volatility, you can focus on what you need to do; whether or not there is a technical reason why you should get in or out.
There is another thing that makes you large, and that is profit; if the only thing that you can lose are your winnings then you're only going to be worried about not maximizing profit.
The closer you get to full size the more you have to be immediately right about the market direction.
Stops get taken out all of the time, but if that stop is connected to a larger size that is in profit then it's not so bad;
what you don't want is to get stopped out all of the time while trying to make a profit.
