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How Many Shares or Option Contracts Should You Trade First?

January 28th, 2014

Hey it’s Sasha Evdakov, founder of Rise2learn. I’ve got a question for you. How many shares are you trading currently on per trade basis? How do you decide that?

Well there's a lot of people out there that wonder exactly this “How many shares should they trade” Should I trade 2 percent of my account size? Or just always trade 100 shares just to make life easier. Now whether you’re trading shares of stock or you’re trading option contracts it doesn't matter. The methodology behind of choosing your trade size is all the same.

My personal tip when choosing your trade or contract size is start with something small start with maybe something very tiny something that you don't even care about in a way for example start with just the weak shares or maybe three option contracts at the most so that way if you want to sell one in the strength you just sell one in the strength you can always multiply it times a hundred to figure out you know the numbers and math behind it but I'll keep your emotions level at a more peaceful area so if you’re trading just three shares and then you'll be able to actually just kind of look at the trade.

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Now yeah it's not going to move too much you're probably not going to make much money but you're building your skills for the future. After you traded three shares for maybe three to six months, that's right three to six months then maybe start increasing it maybe you start increasing it to 20 shares a hundred shares.

Start slow so let’s say you go to 20 shares after you build that up for six months you go to 50 shares or a hundred shares after you build your hundred you can go to 1000-2000 the sky is the limit you know how difficult it is to really actually just move up in share amounts it's just a punches of the buttons on the keyboard that’s  all it is the rest a bit is actually the game so when you're getting ahead of yourself think of it this way that's how easy it is to increase your trade size or make more money but you need to learn the game first.

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You need to learn how to play just like when you're playing tennis you don't just all of a sudden go and play the professionals when you're on the tennis court not your first day out on the tennis court at least.

You need to go out and broaden your skills, you need to build up your muscle memory you need to do a lot of running you need to do a lot of practice in order to get the appropriate swings correctly so when you do that and you build that up might take in five years might take you 10 years to be able to play tennis after that and after you've done the appropriate thing day in and day after day then you go and play with the professionals and that's where you make your million dollar tournament wins that's where you make your million-dollar sponsorships. You don't just make it you know the next week that you open up a trading account, it’s not easy money.

There's no such thing as easy money you have to put the time the effort and the energy behind it in order to be successful. Not to mention it’s also a never ending game meaning you never end the learning process. You're always going to continue to learn improve and hone your craft.

If you want to be the guy that manages the $50 million dollar hedge fund then by all means you can do that as things evolve and as things progress but you need to start light and you need to start at the bottom.

Remember everybody works, nothing is free and everybody start at the bottom so do your due diligence and start at the bottom and evolve your craft evolve your skills and just bring out a little sequence of events that hey the first three months I'm going to do this the next three months or six months I'm going to do that. Next six months I’m going to do this and then when you lay those things out when you lay out a plan for you to evolve then get better that's when you really start taking your trading to that next level .

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.