I’ve said this before, and I’ll say it again: I never really know which trades are going to be my biggest winners.
Sure, sometimes I get a setup that checks all the boxes:
Price action looks great
volume confirms
sentiment is lined up
and I feel like I’ve got a winner on my hands
But more often than not, those aren’t the trades that end up paying me the most.
The ones that really work? They usually sneak up on me. Quiet names. Unexpected moves. Ones I nearly talked myself out of. Which is why I’ve learned—through many hard lessons—to keep my size consistent.
This is one of the most important forms of discipline I’ve developed as a trader: Treating every trade the same.
Same sizing. Same process. Same rules.
Whether I’ve got massive conviction or mild curiosity, I try to keep the structure tight and the exposure sane.
Why? Because the alternative is a psychological nightmare.
If I go all-in on a trade I’ve hyped up in my head, and it turns out to be dead wrong? I don’t just lose money—I lose mental capital.
I then second-guess myself. I hesitate on the next trade. I spin into regret and try to “make it back,” which usually only leads to more damage.
That’s no way to live.
Keeping my sizing tight—even on high-conviction trades—is how I protect myself from myself. It’s how I stay in the game.
And when a trade does go my way in a big way? Great. I can always build on strength, or roll it into a new idea. But I don’t need to force the big win upfront.
This game rewards consistency and survival far more than it rewards heroics.
And for me, small size isn’t a lack of conviction—it’s a sign of respect.
Respect for the market, respect for the unknown, and most importantly, respect for my future self.
Sean McLaughlin | Chief Options Strategist, All Star Charts
