"Scaling out" is inferior behavior
- Thread starter Buy1Sell2
- Start date
Care to furnish us with a link? Seeing as how you engage in very few trades, surely you can spare a few moments to find it. Consider the credibility it would add to your case among those posters in this thread who doubt your one-size-fits-all logic.Quote from Buy1Sell2:
I have listed it elsewhere on ET. Suffice it to say, that is is profitable with very few trades.
Scaling is superior behaviour for intraday futures trading. Enough said.
Only for the long-term trader is not scaling out viable, although I would still scale out LT positions, since you never know what's going to happen tomorrow.
Why not take some off at an optimal point instead of watching it go against you.
Only for the long-term trader is not scaling out viable, although I would still scale out LT positions, since you never know what's going to happen tomorrow.
Why not take some off at an optimal point instead of watching it go against you.
I agree with your logic, but not your wording. It is because we don't know the optimal point until after the fact that it makes sense to scale out.
No on both counts. Scaling is inferior on all time frames. It is driven by fear,greed and a need to stroke the ego/emotional outlook with a better winning percentage(amongst other things). The math is the same and doesn't care whether you are on a weekly, daily or a one minute time frame. The scaler has put on a position that is too large for his risk level and needs to dump part of the position before maturity on any time frame. After all, why wouldn't you hang on to the full position if the charts indicated that the move was not mature yet?
Ok, we really don't know the optimal point. But we do know where we could have a probable sell zone (if we're long) What I do is take some off at this point. Now if it keeps going great, I'm still onboard, if it pulls back I want to add contracts, as long as the trend is intact and a signal is present.
If I'm confident in the trend then I'll try to hold as long as I can, with minimal scale-outs.
Do what you feel comfortable with. For me its scaling out.
If I'm confident in the trend then I'll try to hold as long as I can, with minimal scale-outs.
Do what you feel comfortable with. For me its scaling out.
Ok...time for me to leave this thread when I see a statement like this.
A large position regardless if it occurred all at once or a scale will get butchered via a market order if the price levels are thin.
Newbie traders or traders that don't trade size and considering trading a lot of size if you are properly capitalize for such...
Don't try what Buy1Sell2 just recommended when a position size is too large for what ever reasons unless you have parental guidance.
See ya and the door has hit me on the way out.
Mark