"Scaling out" is inferior behavior
- Thread starter Buy1Sell2
- Start date
you could get all out at the top and have it not be the top((??,better??) to leave money on the table by taking off a partial at or near your target and leave a runner ,than to wait for an all out and have it reverse before target and you gave money back, i emphasized better because it's 6of 1,1/2 dozen of the other ,you never know,you went all in at 1314 and it ran to 1347,had you partialed in your average would have been much higher than 1314,had it not run up and 1314 was the top ,your concrete beleif would have merit,it's obviously,exampled by your own trading,not a rule that should be carved in stone
...you sold 1314 on jun 30, ,..unless you know where the exact top and bottom is,avg is better,had you said all in and all out on major trendlines,then i would agree about the chisel and the stone,proof is right in front of your eyes, you went it at the 50% fib line,if it didnt hold you scratch,small loss or add,the all in trade rule on majors only,would have worked this time,and the partial on other supp/res would be more prudent we don't often hit majors so shorting early gives more trades/profit when right... this chart is not an anomaly,it happens all the time ............................................................http://www.elitetrader.com/vb/showthread.php?s=&postid=3224129#post3224129Quote from Buy1Sell2:
This one is carved in stone. I've proven the point many times here. It just doesn't compute sense to leave runners etc. If it makes sense to remove part of the position, it makes sense to remove it all.
Lol let this topic die already. Your one purpose on this site is to prove this point?
To scale out or not to scale out has probably a .01% chance of making a difference, in terms of edge, between success and failure over the long run. In terms of "maximizing" profits, I'm sure it most likely evens out as well.
But besides the obvious rebuttals, think of it this way: Which method will actually help you develop as a trader?
On one hand, trader A says "I'm getting out here completely; this is enough profit for me, I don't care how much further it goes, I'm happy with what I know and don't care to dwell on things further."
While trader B might say "I'm not exactly sure, this trade may have further to go but this is usually where I take my profits. But let's see if I can develop my ability to hold winners longer and learn to sit -- I'll take half my position here and see how the rest works."
There is so much more to handling a position besides either A or B and naught else. Have you ever taken a position, doubled up as it went your way, scaled out some as it continued -- then seeing how the market reacted to your partial sales, redoubled and/or even tripled back the position?
Black and white? Or shades of gray? Imo, simple is as simple does. Sorry for the rant but just can't stand stubborn pontification -- it's so antithetical to the way a successful trader thinks and develops.
To scale out or not to scale out has probably a .01% chance of making a difference, in terms of edge, between success and failure over the long run. In terms of "maximizing" profits, I'm sure it most likely evens out as well.
But besides the obvious rebuttals, think of it this way: Which method will actually help you develop as a trader?
On one hand, trader A says "I'm getting out here completely; this is enough profit for me, I don't care how much further it goes, I'm happy with what I know and don't care to dwell on things further."
While trader B might say "I'm not exactly sure, this trade may have further to go but this is usually where I take my profits. But let's see if I can develop my ability to hold winners longer and learn to sit -- I'll take half my position here and see how the rest works."
There is so much more to handling a position besides either A or B and naught else. Have you ever taken a position, doubled up as it went your way, scaled out some as it continued -- then seeing how the market reacted to your partial sales, redoubled and/or even tripled back the position?
Black and white? Or shades of gray? Imo, simple is as simple does. Sorry for the rant but just can't stand stubborn pontification -- it's so antithetical to the way a successful trader thinks and develops.