Staking problems

[elizabeth57]

Good morning, i wonder if anyone can give me some advice regarding staking. I am using 2 pound stakes and having some success. The problem is when i go up in stakes to 20 or 50 i get my fingers burnt. I lost 300 and it hurts but i can get over it. My question is how do i go up in stakes without running into trouble? is it a sign that i need to stay where i am for a while and not rush. I may try going up to 5 today and see how i get on.Thanks

[LeTiss]

When using £2 stakes, what was your bank level?

This is the reason why I advise people to get out of the practice mode ASAP, because playing with real money makes you think and react differently. At £2 stakes, you are relaxed, as you aren't too bothered if it goes wrong. When you push it up to £20, £50 your brain starts working differently, and you become more hesitant, nervous in the markets

My advice if you are unsure, is to use stakes as a % of your bank. In which case your stakes will automatically rise gradually, as your bank rises gradually

[elizabeth57]

Thank you for your reply my bank is currently 200 so i should probably stay with 2 pound stakes for now just trying to run before i can walk

[LeTiss]

I can't define your staking methods, nor can anybody else. However, early doors it's all about learning the ropes and building your confidence, so using stakes that you feel comfortable with is ideal. Clearly, stakes that equate to 1% of your bank make you feel in control of what you're doing, so initially this obviously works for you. If you are successful, and you build your bank to £210, then £220 etc, you can also raise your stakes to £2.10 and £2.20 etc as you progress, and you will still be feeling in control of what you are doing. As time goes on you can redefine this approach if you are gaining confidence

[Bluesky]

I think for the vast majority of new traders moving from stakes of £2 to £50 is too big a step. Seeing the difference in profit and loss with each tick of price movement is going to be difficult to cope with. I think a lot of new traders have some success with tiny stakes and then increase the stakes too quickly and blow their bank, not realising that you will not be able to think as clearly once useful chunks of money are put at risk.

Why don't you increase the stakes to £5 and see if your results are broadly similar (in percentage terms) to what you achieved at £2. If once you have traded at this level for a while and consider you are trading the same as with you did with £2 stakes then up them again. I think too many new traders want to make some real money too quickly, try to focus on getting better at trading and you will find that your bank starts to increase almost without you realising it.

[elizabeth57]

Thank you all for your help and advice i worked through todays racing card at 5 pound stakes, had no losses one inplay trade but it was ok i try not to do that as i got in hot water before on bigger stakes. In short yes 5 pound stakes worked very well. I learned to take baby steps ! I have not used the ladder interface yet as i am happy where i am for now. Thanks guys

[Bluesky]

Excellent results, watch out for going in play unless you have planned for it. Going in play by mistake can wipe out a lot of ones profit in one race which can be psychologically devastating and very difficult to recover from. Keep doing what you are doing now and only move up to say £10 stakes when you are absolutely comfortable with all this. There is no rush to making decent profits at trading, if fact the quicker you try to get there the more likely you are to fail unless you are exceptionally gifted.