"Scaling out" is inferior behavior

[ammo]

Quote from trackstar:

I have no idea what you are asking. I have both a tight stop and a decent sized move anticipated. It makes it very clear cut when I am wrong.

i usually use a 2 point stop in es,any smaller and i would get stopped out too often, that would mean a 16-40 point move,i guess that would be possible in the last 2 weeks,or u r using a smaller stop.,thats why i asked

 

[Forrest Gump Jr]

I would have liked to vote in this poll, but the correct answer isn't a choice.

The correct answer is it depends! What does it depend upon? Any number of variables. Well, how does someone find the variables? The market and correct analysis thereof will answer any and all questions.

Such as, when to;

1. enter
2. hold or reverse
3. add or subtract
4. exit

 

[Buy1Sell2]

Quote from chewbacca:

scaling in is as inferior as scaling out - seriously..........nail the entry and nail the exit

i'm saying go all in on the position without investing all your capital into it........leave plenty of capital for other positions.......leave 90% for other positions


guys that like to scale like to increase their win rate instead of the amount of money won.......its an ego thing

BINGO!!

 

[Buy1Sell2]

Quote from trackstar:

-First 1/4 is taken at the profit level of 2x my stop. This allows me to give the market room and takes advantage of the fact that I may still be wrong but get some arbitrary move. BUT now I only have the loss of half of my position.

-The rest, if successful, is ridden to my target.

No---Better bet is to ride the full amount to the target.

 

[HolyGrail]

Well I have to admit I disagreed with buy1sell2 on this. I have changed my trading to reflect this style and have been more profitable.

The proof is in the dollars for me.

 

[Buy1Sell2]

Quote from Reaver:



No one way to trade properly.

False.

There may be many different profitable signals , triggers etc., but there is only one proper way to trade. That is: Cut losers short and ride winners to either the target or the trailing stop with full position on. Choking off profits by scaling in or scaling out is a scaredy cat strat designed to stroke the "trader's" emotional outlook/ego. Sorry, if this is any of you, but it is the truth.

 

[Buy1Sell2]

Quote from HolyGrail:

Well I have to admit I disagreed with buy1sell2 on this. I have changed my trading to reflect this style and have been more profitable.

The proof is in the dollars for me.

If you have an opportunity, or feel the need to share, please let us know the porgression of thought processes and actions that brought you to where you are now--.

It may help others--

 

[Dustin]

Quote from Buy1Sell2:

False.
Choking off profits by scaling in or scaling out is a scaredy cat strat designed to stroke the "trader's" emotional outlook/ego. Sorry, if this is any of you, but it is the truth.

To think I have been trading wrong all these years! Thank you so much for the wisdom!

 

[HolyGrail]

Quote from Buy1Sell2:

If you have an opportunity, or feel the need to share, please let us know the porgression of thought processes and actions that brought you to where you are now--.

It may help others--

It was really quite simple. I kept a journal for 2 months of every trade I placed. I continued to trade my scale out style. For each trade I kept statistics as to whether my target would have been reached with my normal trailing stop. I soon discovered my target was reached better than 70% of the time, yet I was scaling out and limiting profits.

My average winner has increased by better than 40% with no downside seen as yet.

 

[trackstar]

Quote from ammo:

i usually use a 2 point stop in es,any smaller and i would get stopped out too often, that would mean a 16-40 point move,i guess that would be possible in the last 2 weeks,or u r using a smaller stop.,thats why i asked

Using a small stop is totally dependent on entry. I measure entry based on price action and TIME. Getting in at a point in time in which the move is about to begin will decrease the chances of being stopped out due to consolidation prints.

Another way in which probabilities can apply.