"Scaling out" is inferior behavior
- Thread starter Buy1Sell2
- Start date
Quote from taowave:
My apologies,
I thought you were referring to me as the armchair warrior with the six pack who has traded less than 5 minutes
think nothing of it Sir.
I might add that this thread as silly as it is, has gone from a Rooster to a feather duster very quickly.
It seems that once anyone brings up the subject of real trading experience there is a sudden dash into the trenches by the OP closely followed by his other usernames with the hapless noobies being left to be caught in the crossfire as they defend the indefensible.
Noobies have a very limited shelf life here at ET.
sosueme
The math is very simple as regards trading. Discover your position size using risk management and volatility and then go full with that position size. Then, get out with full position size when exiting. You see, if it makes sense to take some off the table, then it makes sense to take it all off the table. In the long run, you will be better off by positioning properly and using all-in, all in out than you will be by scaling in/out. The numerous mathematical examples that I shown are valid and cannot be disproven. I also know this from years of trading experience.---Can a person make money when they scale in/out?--Yes. ---Can they make a lot of money scaling in/out?--most certainly. ---Can they make more over the long haul than a trader who does not scale?---Absolutely not.----Ishmael
Only if you know 100% what the market will do exactly.
So are you advocating never to trail a stop on a winning position ?
Quote from Buy1Sell2:
A couple of items here--
One, we now have an admission that a person scaling out is taking a position that is too large. Secondly, you have made my argument for me by showing that had you kept all contracts to 700, you have made the most money. All in--All out--- Not All-or nothing as some have tried to change my philosophy to.-- Ishmael
That is your assumption.
Buy1sell2 10 lot position with a 100 point stop
Volente_00 40 lot position with a 3 point stop.
If you gain 100 points on your trade, I only have to make 25 to equal it while only risking 6k while you are risking 50k.
Who is more scared here ?
The one who has to have a large stop because they don't like being wrong.
You stand to lose more being underleveraged and overscared of being stopped out.
I have 8 chances to use to make the same amount while you only have 1 all while risking roughly the same amount even if it takes me all 8.
What is more probable ?
A 25 or 100 point move in ES ?
Of those 8 chances, I can also choose to scale out to only a 10 lot and take a chance at getting a 100 point gain anytime.
Quote from Buy1Sell2:
---Can they make more over the long haul than a trader who does not scale?---Absolutely not.----Ishmael
And there is the broad sweeping statement that tells the world you have some technical knowledge of trading but you have yet to find the courage to trade.
Well if it it not courage then some form of fear is holding you back.
The evidence is in your posts Buy1Sell2.
Why don't you just start off small with one lot and get your entries and exits working first.
Forget ET and just focus on feeling comfortable being in the market.
Once you have worked up some size then you can scale or not scale as you see fit since nobody cares apart from you.
The experience will alter your thinking and you will be the better for it.
sosueme