Comments on: 3 Signs You’re Trading Too Big

By: World Series Series, Part 2 - Have a Backup | TheStockBandit.net

World Series Series, Part 2 - Have a Backup | TheStockBandit.net — Fri, 27 May 2011 15:15:59 +0000

[...] in. It’s also a great reminder to size your trades accordingly, because you don’t want everything riding on any one trade – ever. The idea of doing that might be exciting if you were to be right, but [...]

By: TheStockBandit

TheStockBandit — Fri, 19 Jan 2007 22:53:56 +0000

Thanks for your comments Brian, that’s exactly true and certainly a situation we’ve all faced from time to time. Definitely a time to cut down the size when buying power is almost gone!

Jeff

By: Brian Schumacher

Brian Schumacher — Fri, 19 Jan 2007 17:39:22 +0000

Jeff,

Good article! Another clue is when you feel a pressing need to buy one more stock, but realize that you’re already up to the limit on your margin. You might be trading too big.

Brian

By: TheStockBandit

TheStockBandit — Thu, 11 Jan 2007 15:33:34 +0000

Good point John, thanks for that input!

Usually we just wake up to the fact that we’re overtrading or trading too big when our losses pile up at too fast of a rate, but it is wise to consider the pace of our profits too. Short-term, gaining ground too quickly is a good thing, but it will inevitably come back to bite you!

Jeff

By: John Forman

John Forman — Thu, 11 Jan 2007 14:44:11 +0000

Very good post. I would add one more clue, something I’ve learned to use myself.

You’re trading too big if your account increases in value more rapidly than you expected.

For example, if I see my account jump 10% based on a single trade in only a couple of days (like a swing trade), then I’m almost certainly trading too large and need to cut back.