Why Does Increasing Stakes Ruin Your Trading?

Ever noticed how trading with small stakes feels easy, but the second you scale up everything changes?

I certainly have, and so has Mike. He left this comment on last week’s article…

When trading for smaller stakes I do ok, as soon as I try to scale up I invariably come a cropper. I trade horses and tennis I do try to stick to the larger volumes.

Does anyone else have this issue? It’s almost like the change in stake size is affecting my judgement in a subtle way that I am having trouble pinning down.

Many traders experience this because trading larger stakes introduces hidden challenges that most don’t see coming.

I’ve been there myself. When I first tried to scale up, I expected bigger profits – but instead, I found myself making worse decisions, getting trapped in positions, and feeling more pressure. The problem wasn’t my ability, it was something else entirely.

Let’s break down why it happens and more importantly, how you can fix it…

Reason #1 – Small Stakes Feel Easy, But Bigger Ones Don’t

When you’re learning to trade on small stakes, the market barely notices. However, when you make a sudden increase things start to go wrong – you’re not imagining it.

The market’s liquidity plays a huge role here as that last post mentioned (linked at the bottom). When you’re trading for £5, £20 or £50 your stakes have very little impact on the market, particularly if it’s a high-volume event. The exception being Irish tracks like Dundalk or Naas – particularly on a Friday night.

On low stakes, you’re like a tiny fish swimming freely in the ocean.

However, as soon as you start increasing stake sizes, things change. Entering for £100 or £200 a click might cause a blemish in the market. It all depends on where the markets pressure points are at that point in time. Worst case – if the market isn’t deep enough – exits start to run away from your bets.

This is where the trouble starts…

You’re no longer just following the flow of the market – you’re affecting it. Your stake might be too large for the available money, forcing you into worse positions and making it harder to lock in value. There’s more on this in our horse racing trading strategy article here.

The key lesson?

Not every market can handle bigger stakes in the same way. If you’re scaling up, you need to be selective about where and when you do it. Think about gently scaling your positions in and out if you’re swing trading. Don’t start clicking irrationally; all that does is show your hand to other traders (some of them will seek to exploit your panic).

But there’s another issue – one that has nothing to do with market liquidity. Let’s talk about that next…

Reason #2 – The Hidden Effect You Just Can’t See

Even when the market can handle your bigger stakes, there’s another issue at play – your perception of the same reality.

When you’re trading small stakes, you’re relaxed. The money doesn’t feel significant, so you focus purely on the trade. But the moment you increase your stakes, your decisions feel heavier. The bigger you go the heavier the burden is – £200, £300, £500.

Winning feels more exciting, losing feels painful, and hesitation creeps in. Regardless of the short-term results, this is not good for your trading.

It’s a subtle but powerful difference because your brain is inclined to protect your balance instead of executing the trade correctly. Maybe you hesitate before entering, second-guessing an exit? or close too early out of fear (we’ve all done it). You start focusing on the money instead of the market.

This is where emotional discipline separates profitable traders from struggling ones. People who are trading Betfair for a living train themselves to think in probabilities, not pounds. They know that a good trade is a good trade, no matter the stake size.

So, if you’re struggling to scale up, ask yourself: Am I making the same decisions I would at smaller stakes? Or is my mindset holding me back?

Saying it out loud is one of the simplest ways to hold yourself accountable. We all tend to ignore that internal dialogue once emotions kick in…

Also, hide your balance on the software you use, don’t check it. Make a deliberate attempt to focus on process instead of the money it wins or loses.

Lastly, really study those different situations and what suits your trading style the most! I hope that helps.

Related: Why 95% of Traders Can’t Do THIS – Results Breakdown