Scaling in

S

Samson77

Hi lads and ladies

Today I tried something new and it was such a success I wanted to get some feedback.

Normally I trade with two targets and a hard stop.
I take half of my cons off at my first target and half off at my second (sometimes half of the last half if the trade is strong and let the balance ride).

Today I had a wider target and only put on a small size trade to start.
The market went in my direction and pulled back where I added to my original position. It hit my first target and instead of taking profit I added more till finally I reached my second target and I took them all off.

The results $$$ wise amazed me and the trade felt really good because even though it was in and out of profit through out the trade even a loss was not that bad $$$ wise and it really was easier psychologically.

I would love to hear about any other traders methods of scaling in.

Thanks.
 
Quote from Samson77:

Hi lads and ladies

Today I tried something new and it was such a success I wanted to get some feedback.

Normally I trade with two targets and a hard stop.
I take half of my cons off at my first target and half off at my second (sometimes half of the last half if the trade is strong and let the balance ride).

Today I had a wider target and only put on a small size trade to start.
The market went in my direction and pulled back where I added to my original position. It hit my first target and instead of taking profit I added more till finally I reached my second target and I took them all off.

The results $$$ wise amazed me and the trade felt really good because even though it was in and out of profit through out the trade even a loss was not that bad $$$ wise and it really was easier psychologically.

I would love to hear about any other traders methods of scaling in.

Thanks.
More...

Ever read Reminiscences of a Stock Operator? Heres a quote, it's about stocks but applies to any kind of trading

"Remember that stocks are never too high for you to begin buying or too low to begin selling. But after the initial transaction, don't make a second unless the first shows you a profit...It took me years to realize the importance of this. It also cost me hundreds of thousands of dollars. I don't mean to be understood as advising persistent pyramiding...Suppose a man's line is five hundred shares of stock. I say that he ought not to buy it all at once; not if he is speculating. If he is merely gambling the only advice I have to give him is, don't! Suppose he buys his first hundred, and that promptly shows him a loss. Why should he go to work and get more stock? He ought to see at once that he is in wrong; at least temporarily."

Cut losses short, let your profits run. Lose small, and win big. Think about it :) Targets are for the weak minded and greedy.
 
I mainly trade NYSE. Lately I've also been starting many of my trades in this fashion. However sometimes I find myself adding to the position at the wrong time and ruining my average cost... I guess it may just take practice reading the tape.. if anybody has any helpful advice it would be much appreciated...
 
I just found the wonders of scaling in as well. It has dramaticaly improved my performance. Now if I can just kep from scaling in at the wrong time (the end of a move) I'll be even better. I think that I can start to learn to scale out as well and that might help.

I also do not believe in setting hard targets unless they are my stops. It's a little harder but I have been getting better at letting the market tell me when to get out and this has helped as well.
 
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