When to increase your TRADE SIZE

Once you have a base sizing rule, you can adjust within it. There are two situations whereincreasing size is reasonable.

The first is when price has confirmed your bias. You took a small position on the initial setup. Thetrade is working. The market is moving in your direction. Now, with the trade already in profit,you can scale in larger on the continuation. This is called scaling into strength. The risk isbounded because if the trade reverses, the original profit cushions some of the new exposure.

The second is when conviction is unusually high and the technical setup is unusually clean. Eventhen, never above your maximum risk rule.

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