A trader explains why tiny position sizes matter for day trading consistency. Using small positions and measuring wins by percentage rather than dollars keeps your mind stable enough to follow your strategy when it counts.
So even if you're a day trader of 1 and 2 shares here, or 1 and 2 micro lots in futures, whatever it is you trade, it should be tiny, tiny position sizes to me. And then gauge yourself on percentage returns, not on dollars. And that's if you start off like that and you get that becomes a comfortable function for you, where it's like, I made 2% today. That was good. I lost 75 basis points, 3/4 of a percent today. Not so bad. I was up 6% today. That's good. Then it's just a matter of adding zeros to your trading account. Whether it's from other monies or from building your account up, the percentages stay exactly the same, and the mental aspect of what you're doing doesn't change. And it's much easier to remain level and be consistent, which we both agree is the key.
