Start Small & Add if it Works
Rule: Start small & add if it works.
Starting small is a relative concept but an important one.
A major factor in any trade is share size which directly ties to balancing risk and managing the trade.
On the image to the left, if you took to many shares to start you could have been stopped out. In fact if you were adhering strictly to the NRBC concept and item 4 was your first entry you should be stopped out under the NRBC area. However if you started small you will have the confidence to enter again at item 5 and your loss will quickly be covered.
Of course, lose small, win big is the theme here. Not only does starting small make more sense risk wise, it boost your confidence and enables you to manage trades better.