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Many people feel scalability issue when it comes to trading.
Few steps which can help u to scale with ease.
1. Scale slowly and steadily.
Ex : trading with 20L then gradually increase to 30,40,60,100L.
Don't directly scale from 20L to 2 Cr.
Few steps which can help u to scale with ease.
1. Scale slowly and steadily.
Ex : trading with 20L then gradually increase to 30,40,60,100L.
Don't directly scale from 20L to 2 Cr.
2. Never see ur MTM in absolute terms , always see in Percentage terms.
Ex. : with 20L ur MTM fluctuates within 40k and when u scale to 40L fluctuation will be within 80k counting 2% MTM fluctuation.
See both in same way as 2% don't see it as 40K and 80K.
Ex. : with 20L ur MTM fluctuates within 40k and when u scale to 40L fluctuation will be within 80k counting 2% MTM fluctuation.
See both in same way as 2% don't see it as 40K and 80K.
3. When u are scaling ur capital u need to make sure underlying u trade is highly liquid so that u don't get very high Slippage cost in ur trade.
Ex. Trade nifty, bnf, or highly liquid stocks of nifty. after some level u ll find difficulty in trading midcaps which is less liquid
Ex. Trade nifty, bnf, or highly liquid stocks of nifty. after some level u ll find difficulty in trading midcaps which is less liquid
4. Try to be conservative trader from start itself so that when u scale u won't find it difficult to scale.
Because if ur strategy has 20-30% drawdowns then it will surely be difficult to scale as normal human mind doesn't bear that drawdowns with high capital.
Because if ur strategy has 20-30% drawdowns then it will surely be difficult to scale as normal human mind doesn't bear that drawdowns with high capital.
5. Stop seeing ur MTM page on every tick as it will make ur life tough to scale.
Any more suggestions are welcomed.
Any more suggestions are welcomed.
