ES Journal Archive (2006 - 2008)

Status
Not open for further replies.
As you know, I do not favor scaling. One of the main reasons is that it lends itself well to emotional interference. I believe that if you feel part of the position should be taken off, then you should take the entire position off. If you feel that some should be left on to run, then all should be left on to run. :)

These may sound like contradictory statements to one another, but the trader who is exercising proper positioning sizing and prudent money management will be able to weigh the risks of both sides and generally take the correct one.
 
Quote from OldTrader:

But this market has been a better trade than trender.
More...

Absolutely correct, brutal whipsaws since late July if you're trading any sort of grail/mean reversion. You have to take your 10's and 20's because it will just whipsaw the previous reaction high/low a few days later.
 
Quote from Buy1Sell2:

As you know, I do not favor scaling. One of the main reasons is that it lends itself well to emotional interference. I believe that if you feel part of the position should be taken off, then you should take the entire position off. If you feel that some should be left on to run, then all should be left on to run. :)

These may sound like contradictory statements to one another, but the trader who is exercising proper positioning sizing and prudent money management will be able to weigh the risks of both sides and generally take the correct one.
More...


Newbie here,

but isn't scaling also part of risk management?
 
Quote from Buy1Sell2:

As you know, I do not favor scaling. One of the main reasons is that it lends itself well to emotional interference. I believe that if you feel part of the position should be taken off, then you should take the entire position off. If you feel that some should be left on to run, then all should be left on to run. :)
More...

Yeah, I'm familiar your thoughts on scaling.

I've always been one to scale out. It reflects the fact that I'm a discretionary trader. I don't use indicators. So I rarely have an exact point where I think I should do something. So I make a trade....see what happens and how I feel about it. Then go from there.

I get your philosophy and your method. I make trades based on alot of different factors (some rather nebulous) that have nothing to do with indicators or for that matter charts. The best way I can describe it is that one of the factors that I pay some attention to is my own personal psychology about the trade, and my "feeling" about the market at the time.

Your method works for you. It's not a method I could effectively use.

OldTrader
 
Quote from speedtrader88:

Newbie here,

but isn't scaling also part of risk management?
More...

Yes, however it is generally employed by a trader who has taken a position that is too large for their means and becomes an "urgent" risk management tool. It also strokes the ego a bit, by being able to "book" a profit.
 
Quote from OldTrader:

Yeah, I'm familiar your thoughts on scaling.

I've always been one to scale out. It reflects the fact that I'm a discretionary trader. I don't use indicators. So I rarely have an exact point where I think I should do something. So I make a trade....see what happens and how I feel about it. Then go from there.

I get your philosophy and your method. I make trades based on alot of different factors (some rather nebulous) that have nothing to do with indicators or for that matter charts. The best way I can describe it is that one of the factors that I pay some attention to is my own personal psychology about the trade, and my "feeling" about the market at the time.

Your method works for you. It's not a method I could effectively use.

OldTrader
More...

Ok
 
Quote from Buy1Sell2:

Yes, however it is generally employed by a trader who has taken a position that is too large for their means and becomes an "urgent" risk management tool. It also strokes the ego a bit, by being able to "book" a profit.
More...

I don't ever trade a position too large for my account. I quit doing that 20 years ago. The ego bit I'll leave to the psychologists...although I will admit to enjoying taking a profit.

OldTrader
 
Quote from OldTrader:

I don't ever trade a position too large for my account. I quit doing that 20 years ago.

OldTrader
More...
This is why I used the word "generally". In your case then, there should be no reason to scale out in my view, but that of course is my opinion-- :)
 
One final thought from me on the scaling discussion.---When we talk about whether or not scaling in/out is a good idea, the side that advocates scaling is basically telling the one lot trader, "You're screwed". :)
 
Status
Not open for further replies.
Back
Top