"Scaling out" is inferior behavior

[Buy1Sell2]

Quote from Cutten:

Why should one have on identical size for a great trade, as opposed to a merely good one? Let's take an example:

I never said one should have an identical size for a trade. I only said it should all be exited at once.

 

[Cutten]

Quote from OddTrader:

I think you clearly missed the point.

When you base on a shorter timeframe for re-entering (and/ or exit), technically speaking, you are actually doing scaling-out that you weren't even aware of by yourself.


Q

Quote from Buy1Sell2:

As a position trader though, I stay with my original premise and just stay short. We weather the bounces and let the trade run. If I see an obvious bullish divergence on hourly charts, I may consider taking profits and reentering at a higher price, but it needs to be very very obvious.

UQ

Exactly. Buy1Sell2 is being a hypocrite here - he admits to taking profits when the risk/reward deteriorates ("If I see an obvious bullish divergence on hourly charts, I may consider taking profits..."), which is exactly what I am advocating. But when someone else suggests exactly this, he says its an inferior method. This is an absurd self-contradiction.

He preaches one behaviour, practises another, and then tries to criticise people who advocate doing exactly what he said he does.

 

[Buy1Sell2]

Quote from Cutten:


So, please explain to me how it would be different in the market. If you still have a profitable opportunity, albeit not as good as when you first put on the position, why wouldn't you take it?

Exit the whole position. Your money can be better used in a trade that has better expectation. Static analysis is not good.

 

[OddTrader]

Quote from OddTrader:

I think you clearly missed the point.

When you base on a shorter timeframe for re-entering (and/ or exit), technically speaking, you are actually doing scaling-out that you weren't even aware of by yourself.


Q

Quote from Buy1Sell2:

As a position trader though, I stay with my original premise and just stay short. We weather the bounces and let the trade run. If I see an obvious bullish divergence on hourly charts, I may consider taking profits and reentering at a higher price, but it needs to be very very obvious.

UQ

You say you're a position trader, but your changes for position trades are based on hourly decisions.

Technically speaking, you're not a position trader as you claimed yourself (that again you are not aware of), and you actually use scaling out for exits. - both are your fautly logics.

 

[Buy1Sell2]

Quote from OddTrader:

You say you're a position trader, but your changes for position trades are based on hourly decisions.

Technically speaking, you're not a position trader as you claimed yourself (that again you are not aware of), and you actually use scaling out for exits. - both are your fautly logics.

Position trader yes--- Aware of what I do--yes. Very profitable--yes. Teacher--yes.

 

[Cutten]

Quote from Buy1Sell2:

I never said one should have an identical size for a trade. I only said it should all be exited at once.

Yes you did:

"It is very obvious common sense to an experienced trader that if the trade still looks good, you stay in fully"

So according to you, if a trade looks profitable, you stay in on the same "full" size. A trade with a success rate of 99% and a 50/50 payoff should be traded on exactly the same size as a trade with a success rate of 60% and a 50/50 payoff. This makes no sense, since one of them is vastly superior to the other.

 

[Buy1Sell2]

Quote from Cutten:

Exactly. Buy1Sell2 is being a hypocrite here - he admits to taking profits when the risk/reward deteriorates ("If I see an obvious bullish divergence on hourly charts, I may consider taking profits..."), which is exactly what I am advocating. But when someone else suggests exactly this, he says its an inferior method. This is an absurd self-contradiction.

He preaches one behaviour, practises another, and then tries to criticise people who advocate doing exactly what he said he does.

If I were to exit, I would take the full position, not scaling out. Sorry guys, you have missed the boat. I've got my new airplane I need to go test, I'll be back later and may respond if I see something worthy. Thanks guys!

 

[OddTrader]

Quote from Buy1Sell2:

No. I am combining the daily chart with the hourly in this example. I provide some shorter term analysis for readers who are shorter term traders in an effort to help if them and cultivate conversation. The problem with communicating on Elite Trader is that the vast majority of traders here are failed day traders. So, I provide some shorter term stuff. I am here to help and share the knowledge that I have gained over nearly 26 years of trading. The ES Journal was entirely designed as a course in why not to day trade, exposing the frantic thought patterns of a daytrader and how ridiculous they sound out loud, while slowing gravitating to position trading which as you can see from the journal, is the place to be.

Sales pitch!

Who are the "We" mentioned below, Mr Guru?

Q

Quote from Buy1Sell2:

As a position trader though, I stay with my original premise and just stay short. We weather the bounces and let the trade run. If I see an obvious bullish divergence on hourly charts, I may consider taking profits and reentering at a higher price, but it needs to be very very obvious.

UQ

 

[Cutten]

Quote from Buy1Sell2:

Exit the whole position. Your money can be better used in a trade that has better expectation. Static analysis is not good.

And if there is no trade with a better expectation? You would pass up the profit, just because it wasn't as good as that which was available before?

 

[OddTrader]

Quote from Cutten:

Exactly. Buy1Sell2 is being a hypocrite here - he admits to taking profits when the risk/reward deteriorates ("If I see an obvious bullish divergence on hourly charts, I may consider taking profits..."), which is exactly what I am advocating. But when someone else suggests exactly this, he says its an inferior method. This is an absurd self-contradiction.

He preaches one behaviour, practises another, and then tries to criticise people who advocate doing exactly what he said he does.

Most gurus (read: vendors) on ET would have a similar aptitude. We'd better only join a thread when overdone.