How to scale your trading portfolio

Ellie Green
Authored by Ellie Green
Posted: Thursday, November 30, 2023 - 00:13

If you’ve started trading different markets and experienced a bit of success, knowing how to efficiently scale up your operations can help turn a side hustle into a full-time endeavour.

Scaling up can take many forms and doesn’t necessarily mean simply sinking more time and money into things – although this is of course an obvious method!

Read on for some more ways in which you can scale up your trading efforts.

Why is scaling important in trading?

Of course, if you’re happy having trading as a side hustle or something you only do in your spare time, scaling up might not be all that important.

However, if you have found success, you may find that deploying similar tactics on a scaled-up basis can be transformative for your life and even career.

Many professional traders begin life as part-timers before finding that a successful strategy can become a great way to earn a full-time living.

Finding a trusted platform

To make your scaling up as easy as possible, picking a versatile trading platform that allows you to explore multiple markets and varying trading styles can be key.

Perhaps you’ve found success trading the stock market and want to see if your tactics can also apply to the indices made up of these high-ranking businesses? Or you may have learned how to execute successfully in the forex market and fancy branching out into the digital realm with cryptocurrency.

Adaptability and versatility are key in scaling up your trading, so operating on a platform that allows it naturally is a great way to start.

What is the process of scaling up in trading?

A crucial part of this process is deciding on a reason for scaling up. Do you want to go full-time? Are you saving for a one-off purchase? Are you attracted by the much-vaunted trader lifestyle on social media?

Whatever the reason, if it gives you the motivation for scaling up – go for it!

Experimenting with currency pairs

Do you play things safe by sticking with major currency pairs like EUR/USD, USD/JPY, and GBP/USD?

Branching out into minor and exotic pairs is a way of scaling up your operations by delving into markets that may be prone to greater volatility. This of course, opens up your exposure to risk but also maximises your profit-making potential.

Minor currency pairs typically do no include the US dollar but are likely to include the euro, pound sterling or Japanese yen. Exotic pairs do not include these safe-haven currencies and feature much more exposure to volatility from factors such as trading volume and political instability.

Increasing trading hours

Increasing your trading hours is an obvious way of scaling up your efforts, committing extra time and capital to more trades in turn maximises your potential returns.

Simply turning into a 9-5 trader may not be the answer for you. Perhaps focusing your trading efforts on the most profitable windows in each trading session may be an avenue for you to strike while the iron is at its hottest.


Share this