Bankroll Management - Part 3
Staking more per point
It can be tempting to start staking more money per point should you have a few good trading sessions online, as a rule of thumb this is something you should avoid. There is an advantage to taking a shot at the higher stakes though, more so if you’re a recreational player than pro, as the money invested is money that can be lost.
Deciding to up the stakes can see you make a lot more money, double the stake and you double the amount of money you can win per trade. As tempting as it is to gamble for more money if you decide to up the stakes it should be controlled. Bankroll management needs to be taken in to consideration, remember the purpose of bankroll management is to decrease the risk of going broke. Even though you’re taking a shot at a higher stake which you aren’t fully bankrolled to trade you need to protect your trading bankroll for the stake you’ve been trading.
One thing to remember is that the higher you play the more it will affect the decisions you make. It’s a bit like a tight rope walker, many people can walk across a tight rope that’s placed just 2 feet above the ground, raise the tight rope to 20ft and suddenly it becomes 10 times more difficult.
Things to consider if you feel it’s time to up the ante a little:
- Only attempt to trade more money per point if you’ve had a few good wins. Never increase your stake per point after a losing session.
- Limit the amount of money you are prepared to lose so you will still have more than the minimum bankroll to trade at the stake you've been trading at should you lose.
- Only chose spots where you’re confident of a good result.
- Don’t allow the change in stake to change the way you trade. It’s that same old point, discipline, it's one of the key ingredients to being a profitable trader.
- Drop back down to your original stake whether you win or lose. Don’t keep trading at a higher stake, save the money and wait until your bankroll is big enough. (unless you've increased you're banroll enough to move up in bet sizes)
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