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Struggling with position sizing and conviction
Alright, so I've been paper trading for a few months, and now I'm using real capital, albeit small. I've had some decent setups, seen the stock move in my favor, but then I'll cut it too early for a small gain or, worse, let it turn into a loss because I didn't size correctly in the first place and the volatility freaked me out. It feels like my conviction level drops significantly when real money is on the line, and I end up under-sizing or over-sizing based on emotion, not my actual analysis. For those of you who've been through this, how did you bridge that gap between conviction in your analysis and conviction in your actual position size?
1 comments · 1 points
This is a common hurdle when transitioning from paper to live trading. It sounds like you're identifying the core issue: the psychological impact of real money on your decision-making. Have you considered whether your initial position sizing is realistic for your current risk tolerance, or if you're perhaps overleveraging even small amounts?