Rapid Day Trading and Scaling... how wise?

T

The newb

Salute,

Scaling is a great survival strategy and can significantly cut loses( and some profit cutting too). Its make sense in a swing trade situation, but I was wondering if it makes sense in rapid day trading. If I am in the trade for 5-15 minutes, expecting and 1-3% gain is scaling a good strategy or should a tight stop be used without the extras. It sounds like scaling in a 5-15 min trade would not be very effective. Could someone please let me know if that reasoning is flawed and why?

P.S.

Yes I am new. Please don't flame.
 
Kill_it_with_fire.gif
Zabityprzezogien.gif
Killthatwithfire.gif
 
If something works for you, it's good.
If it doesn't, it's bad.

What's good for you may not be what's good for me.

There's no correct answer.


Kudos to the flamer who posted before me :)
 
Quote from stevegee58:

Kill_it_with_fire.gif
Zabityprzezogien.gif
Killthatwithfire.gif
More...

good one :)


The "something works for one does not work for the other" is understandable, I just wanted to know what is the commonly accepted view on this types of trades and scaling.
 
Depends on what type of trade you're making and your hit/miss ratio.

If you're able to capture a large run, but solid hits are few and far between, then by all means scale in and out. You're essentially dipping your foot in the water here and then diving in when you realize the water is warm.

If you're exploiting small pricing inefficiencies that don't last long, but there's a lot of them, then don't scale in and out, cause the move won't last long enough.
 
You must log in or register to reply here.
Back
Top