Scaling in to winning trades

rajesheck said:
Business mindset is the foundation upon which we build our trading skills.

This my perspective or my belief...
https://www.elitetrader.com/et/threads/scaling-in-to-winning-trades.374849/page-4#post-5822389
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Got it. I think it cuts a little deeper. You are going to experience losing streaks and losses on a regular basis if you trade. You need to be able to have psychology/mindset to ride those out. The fact of the matter is, once money is on the line, things get real and the discipline you thought you had, disappears. You have to have a system you trust and follow it. It sounds simple, but so many fail to do it.
 
wildchild said:
Got it. I think it cuts a little deeper. You are going to experience losing streaks and losses on a regular basis if you trade. You need to be able to have psychology/mindset to ride those out. The fact of the matter is, once money is on the line, things get real and the discipline you thought you had, disappears. You have to have a system you trust and follow it. It sounds simple, but so many fail to do it.
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Probably discipline is the key for success which as you said is a rare quality among most traders. Difficult experiences will mould a trader's discipline.
 
Blitzjoker said:
I only trade a very small size with a small account, but today I successfully scaled in to a winning trade for the first time. This feels like a bit of a game changer to me. I read about it recently in Best Loser Wins by Trader Tom (Tom Hougaard), which I can very much recommend.

Most of us here have probably had that wonderful (but fleeting) feeling when we are on the right side of a fast moving trade. The market is clearly urgently looking for a new level, and it is in these few moments that I think scaling in could be a good technique (though probably not for a beginner).

I exited all the positions once the trades began to falter, as clearly a fast move up can quickly be followed by a fast reversal in a volatile market.

Interestingly, Al Brooks remarks in his video course that he very rarely scales in to winners, as it increases risk, and also increases your average entry level for a bull trade. He does not however advise against doing it, just says it is not for him. He is a keen proponent of scaling in to losing positions though, provided your original premise for the trade is still valid, and the market has reversed back in your favour from a lower position. Other posters here have used this technique with success, though it certainly needs to be handled with care, as your mind can use it to justify holding on to bad trades which is clearly not a good idea.

Scaling in, in general, seems to be a technique employed by more experienced traders. Any thoughts here on it?
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Hello Blitzjoker,

If it makes money, it makes sense.
 
I like to scale in as price goes against me, and scale in when price moves in my direction. Context, time of day and price action dictate when I do one over the other; averaging down/up in ranging behavior, pressing in strong trending behavior.

If you're going to do that you should have an idea of where you're wrong, where there is disappointment, and be able to cut for both.
 
Blitzjoker said:
I only trade a very small size with a small account, but today I successfully scaled in to a winning trade for the first time. This feels like a bit of a game changer to me. I read about it recently in Best Loser Wins by Trader Tom (Tom Hougaard), which I can very much recommend.

Most of us here have probably had that wonderful (but fleeting) feeling when we are on the right side of a fast moving trade. The market is clearly urgently looking for a new level, and it is in these few moments that I think scaling in could be a good technique (though probably not for a beginner).

I exited all the positions once the trades began to falter, as clearly a fast move up can quickly be followed by a fast reversal in a volatile market.

Interestingly, Al Brooks remarks in his video course that he very rarely scales in to winners, as it increases risk, and also increases your average entry level for a bull trade. He does not however advise against doing it, just says it is not for him. He is a keen proponent of scaling in to losing positions though, provided your original premise for the trade is still valid, and the market has reversed back in your favour from a lower position. Other posters here have used this technique with success, though it certainly needs to be handled with care, as your mind can use it to justify holding on to bad trades which is clearly not a good idea.

Scaling in, in general, seems to be a technique employed by more experienced traders. Any thoughts here on it?
More...
All in all out is the correct method
 
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