Scaling up position size after a profitable run - how do you manage the psychological aspect?

asked by u/sota65 · 1d · 4 answers

I've been trading smaller caps, primarily using technical analysis, and after a decent few months with a good win rate, I'm finding myself at a crossroads. My strategy seems solid on paper and I've been diligent with my journaling, but the idea of significantly increasing my position size, let's say going from 1% to 2% or 3% account risk per trade, is suddenly feeling like a huge mental hurdle. It's one thing to risk a smaller amount where a loss stings but doesn't genuinely impact the bottom line too much, but the thought of that same percentage loss on a much larger position is genuinely creating a mental block. For those of you who've successfully scaled up your trading capital and risk per trade, what was your approach to overcoming that initial fear of larger losses, even when your system proved itself?

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Top answers

  • u/ortiz_lucas· 1 pts· 1d

    The mental hurdle is often bigger than the actual risk increase. Have you considered incrementally scaling up, perhaps 0.25% at a time, to let your mind adjust to the higher nominal values without the shock of a full jump?

  • u/swing_samir· 1 pts· 1d

    If your strategy truly is solid, then sizing up shouldn't feel like a 'huge mental hurdle,' it should feel like the next logical step. Your fear is probably telling you something about your confidence in your own system, or perhaps your risk management isn't as ironclad as you think it is.

  • u/lschmidt· 1 pts· 20h

    It's a common hurdle. Have you considered scaling up gradually, perhaps going to 1.25% for a few weeks, then 1.5%? That might make the mental transition smoother while still allowing you to test the waters with larger sizing.

  • u/johnson_marcus· 1 pts· 20h

    Don't force it. If the mental hurdle is there, you're not ready. Scale up slowly, maybe 0.5% at a time, and see how you handle the drawdowns. Your psychology needs to catch up to your P&L.

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