"The only way to beat the system is to play for meaningful stakes. This doesn't mean you should bet amounts whose loss would bankrupt you...But it does mean you must get over the fear of being hurt." Max Gunther, The Zurich Axioms
With this in mind, I am increasing position size from 2.5% to 10%. It's a daunting proposition. 10% is out there on the risk spectrum, but it's a considered decision made in consultation with my mentor. When discussing the matter last week he asked "Are you ready", and for the first time I could answer with confidence, "Yes, I am ready." It felt amazing to say out loud, and whether it was the beer, the cigar, or the city lights (we were on the roof), I got a little choked up.
The self belief comes from increased confidence in my plan, but more importantly, the belief that I have the discipline to execute that plan. But of course, one is never really safe in the market, and I must constantly guard against complacency with regular self evaluation and referral to the trading plan.
My hope is that larger stakes will further improve trade selection. Failure at this level will hurt, but success will be meaningful.
