What's up everyone? Ross here with Gavin and we're going to talk to you about position sizing. We just think about that. Yeah yeah, cool blue light glasses. True I don't know I think the the comments are gonna have to decide who wins on what you guys think on mine.

the better ones are hands I like em both. Alright so now once you try to play cool, you know I know you're kinda sitting here with your spiritual leader which probably like you know, a lot pressure. It's a lot of pressure. yeah, but I know you're gonna do well.

So I want to talk about position sizing? So today was kind of interesting day for me and your traitor. so you know I kind of want to bounce this idea off you I feel like one of my problems is inconsistent position sizing. So for example, when I'm trading like today, you know I'm going easy I'm trading with small size and then all of a sudden I see something I'm like oh that looks like a great opportunity and now I take three times my normal position size I go like super aggressive on it and you know of course the result today was that it ended up being a loss and if it had ended up ripping. If I had not taken bigger share size I would've felt like I didn't maximise on position right? I would have felt like man I only took three thousand shares and this thing went like 50 cents a share.

Why did I size up Yeah right? So sometimes people vast Ross Why don't you just use the same share sides like all year round. every day. Whether it's three thousand shares or six thousand or nine thousand, just use the same share of size every day it will average out. And my reason for not doing that has always been that I want to I don't want to take full-size during the and on the other hand, during a hot market I Feel like I'm under capitalizing on the opportunity to go with small size.

So what ends up happening is it pretty much any given day my share size will fluctuate between 3000 shares and like 20,000 shares. and I'm not super good I Feel like knowing if I'm adjusting my share size based on true market data or my own emotion like the frustration of missing something. Yeah, that's definitely I mean that's something that I think every trader struggled with across the board, you know I definitely do cuz yours. You always want to be bigger and the trades that you do well in and then you're always too small on the trades that you do.

It's like it. Yes, it's hard to really focus on or and it's hard to know not just to focus on your share size, but too hard to know what what trades are taking are actually conducive to being those homerun trades. Whether it's the this setup or the criteria that you're looking for yeah, or if the markets hot and rather that setup is gonna yield a really homerun trade, right? All right. So it's really something I I struggle with.

So what do they do for me I Personally, it really depends I try to look at just the the criteria that I'm looking for in a trade and since I've been trading some more large cap stocks I've been looking for just some specific things that if they all align, that's something that I'm gonna put on more risk for and for trades that I am just interested in and think maybe could yield a better or a good risk reward. Those ones I tend to use less share size, but okay, it's it's something I'm working on and definitely so grow. So you you do actively adjust your share size based on what you perceive as the quality of the setup on any given day. So you might go from let's say a thousand shares to three thousand.

you'll go up and down based on what you're seeing in front you. Yeah, and depending on like a lot. Obviously there's a lot of factors that go into it, but depending on the time of day, what kind of volume you're seeing in the stock will kind of do is work what's on the stock. All those factors kind of activity - whether I'm looking to take larger size or if it's just something where I just take my normal so you know the stock I traded today Apop Great pre market chart.

maybe like four grand on it yesterday. It's a recent reverse split. You know it's gapping up my forty percent. It's got a pre market high of 410.

Its consolidating. The whole pre market was a beautiful flag. I Get in for the break of four, it goes to 403 and then like drops back to 360. Now to me, it looked like it looked the same as a setup that last week would have probably ripped to 450.

Maybe five, maybe even six or seven. And so that's one of those factors. It's kind of confusing because on one day a stock with no news ends up going up three over sent and on the next day of stock with great news and a great pre market chart and everything on the daily charts checks out and failed. So so that's the area where I feel like just the technical indicators.

You know they fall short because they can't tell you market sentiment I'd agree. and I think that those are those trades that are do have those. A plus the A+ criteria. Yeah.

and so putting on good risk or like more risk for those trades is something that you want to be doing. but it's not always gonna work out every single time even though we want it to. and even though it has a high probability of it, there are always gonna be those outliers that don't. And depending on if it's the market that we're in or like I mean obviously last week we saw a follow-through, but this week we haven't seen as much.

Yeah, and who's to say whether it's the market were in or if there was some like. it's hard to say yeah? why? I didn't work out, but that's kind of the whole saddle as a trader. Yes, yeah. I mean at the end of the day it's about percentages, so you know if your accuracy is 70% then over the long haul, you'll be profitable.

Unless you know. you take seven trades where you risk a hundred to make 200 and then you take three trades where your risk 10,000 to make hundred and then and then it doesn't matter that you're right seventy percent of time you're still losing money because you're fluctuating your risk so greatly. And I think for me, having built up to trading in a larger account, it's It's easy to take ten thousand, fifteen twenty thousand shares. And on a day when the markets hot boom, fifteen twenty thirty thousand dollars of profit.

But that same exact set up on another day can result in a time fifteen thousand dollar loss. same exact setup. Everything is saying the only difference is something in the market that's not tangible that you can't really pulling. you can't Indian there's no indicator for it I Mean it's just.

it's either there or it's not. Yeah, definitely. I Mean trading trading in front of people every day definitely makes having those swings like you've got over in the last few videos. Trading those swings is definitely a lot harder.

and taking those losses and showing everyone and then having everyone's input on it can definitely be a struggle because there are days where yeah you take a good trade and all the setups there but just doesn't work out them. but that's a part of right the progression of trading. and yeah, the percentages. So I think the thing that I'm thinking about is I want to try to smooth out this rollercoaster that I'm on.

You know, which is partially the result of you know, taking a big loss and then trading a small share size while I recoup missing a great opportunity, then over compensating with huge share size on the wrong one and you know this kind of wild trading pattern and I'm wondering if I wouldn't do better if I just for this month. For instance, if I had just traded with like 3000 shares for every trader took the whole month, would at the end of this month would I have actually made more money even though I wouldn't have had those really big green days mm-hm and I might have felt FOMO because I missed and under kind of leveraged on the days when stocks went up 300% Yeah, but I then on the trades that went the wrong way wouldn't have you know taken so much risk that now three losses disproportionately affect my entire profit loss ratio. and essentially you know, cut my entire monthly profits down by like sixty percent because of three $10,000 So whatever the case is, what would you say to just using the same share size every day? What if I told you you have to do it in that I would say that if you're looking at like me personally, if you're looking at the relative account size. if you're if you're gonna allocate 3,000 to every single trade, then I would expect those all those trades to have the same criteria and have the same setup and the same Claudio set up.

You know? Yeah, so your quality standard. So in distinguished babies that were there I'll take smaller share size on this because it's only get be set up. Mmm if you're saying same share size then all of a sudden everything has to be of quality. So I mean then maybe that will lead to you end up focusing on only those eight plus setups and not creating those be setups.

but I'm the the FOMO may still come in. but if you're only trading that share size I mean you can always call up the broker and be like and the thing is I could always take three thousand shares of Tesla cuz that's only nine hundred grand. Yeah, same same risk. Yeah, if it's three thousand shares, it's three thousand shares.

You want to stick with snot caps if I'm gonna cuz that's the scene that there's always a loophole as a habitual children. yeah, there's always a Joanna trainee at read large caps. I said three thousand shares. I didn't say anything about price range, but you know, I think for me that that is the challenge because even if I do limit myself to three thousand shares, if I have 3 losses, let's say in the three hundred bucks each, I'm down nine hundred, then I'm going to feel like man to get myself back to flat or back to break even.

I'm gonna have to get like a good 40 50 cent winner. Three thousand shares. That's not realistic. It's much easier to grab 20 cents with nine thousand.

and now I'm not just back to flat I'm back to green and I've sometimes done that where I dig myself down and then I take a little bit of a bigger swing and that pops me from happening yesterday down to a grand to up almost six thousand on the day. You know? for me, it's kind of like over the long-term if I'm long-term profitable. you know? So there's some whoops, You know, the roller coaster. There's some ups and downs.

the long-term if it works, it works I think it just feels like I could do better I wouldn't be able to say that it wouldn't make you do better. Mmm I don't think anyone can say that. mm-hmm when it comes to trading internationally. Percentage: if you look at the numbers, they don't lie.

So yeah I mean yeah, we'll see and that's the thing I don't have strong data to back up this thought that perhaps I would do better if I just stuck with the same share size because I haven't done it. And the way I look at my trades from going back at all my traits I can see the trades I took but I can't see at least in the reports that I run. it doesn't show the share size, it just shows like the total shares traded through the position which might have been buying selling getting in and out. So I would have to.

Really I'd have to put my money where my mouth hasn't actually tested for a period and see is the net positive? Yeah, now you're definitely and you think I'm up for it? Definitely? Yeah. I mean maybe I may need to come and check on you once in a while. Yeah, sure. but yeah I think yeah I think yeah I think I'm considered a value trying to outshine me in my own video.

All right I think this is a good place to end the video. He's had too much time to spotlight all right guys questions. Comments: leave them below and I'll see you guys for the next video. You want to learn more about trading? Check out some of the links in my description and if you have questions, ask them in the comments.

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