In trading, the phrase “go big or go home” is often glorified. But does increasing your position size really lead to better profits—or does it just increase your risk of ruin? Let’s break down this common misconception and uncover what truly drives sustainable profitability in trading.

The Illusion of Bigger Positions and Bigger Profits

At first glance, it seems logical: the larger your position, the more money you stand to make. If a 1-lot trade earns £100, wouldn’t a 10-lot trade net £1,000?

Yes—but only if the trade goes in your favour. This is where many traders overlook the risk-to-reward balance and probability of loss. Bigger positions don’t just magnify profits—they also magnify losses. A single losing trade at a large size can wipe out weeks or months of progress.

Risk Management Matters More Than Position Size

Successful traders don’t chase profits—they manage risk. Position sizing should be based on your:

• Account size
• Risk tolerance
• Trade setup
• Stop-loss level

Example: If you risk 1% of your capital per trade, a string of losses won’t cripple your account. But if you consistently risk 10% on oversized trades, a few losing trades could be catastrophic.

The Psychological Trap

Larger positions intensify emotions like fear and greed, often leading to poor decisions:

• Cutting winners too early to lock in profit
• Letting losers run in hope of a turnaround
• Overtrading to recover big losses

Professional traders aim for consistency, not adrenaline-fuelled swings. As position size increases, so does emotional pressure, which can distort your judgement.

Leverage: A Double-Edged Sword

Retail traders often use leverage to increase position size, believing it boosts returns. But this is risky without proper stop-losses and discipline. While leverage can amplify returns, it can just as easily accelerate losses.

Compounding Profits—Not Risks

The real path to wealth in trading is consistent, compounding growth—not oversized bets. Traders who scale positions slowly, based on performance and account equity, build resilience.

A well-known rule among seasoned professionals: “Size kills.” Overleveraging or trading above your risk threshold is the fastest way to blow an account.

When Bigger Might Make Sense

Advanced traders can increase position sizes—but only after:

• Building a track record of consistent performance
• Having a robust risk management plan
• Using dynamic position sizing (e.g., risking a fixed % per trade)

Even hedge funds size positions based on volatility and risk exposure—not just profit potential.

Conclusion: Bigger Isn’t Always Better

Bigger positions do not equal better profits. In fact, for most traders, they lead to bigger problems. True profitability comes from smart risk management, emotional discipline, and consistent execution.

If you want to master the right way to grow your trading account with precision, not luck, explore our Trading Courses designed for traders who want long-term success, not short-term hype.