"Scaling out" is inferior behavior

[dealmaker]

Scaling in and out is a higher probability trade however, its hard to be successful at this doing short term trading situations eg day trading 5-10 minute intervals, its much better for swing and position trading.

 

[ammo]

Quote from Buy1Sell2:

A trader makes more by removing the whole position and buying the pullback--not by removing part of it.

a trader makes more trading the market,a mule trades on ideals

 

[volente_00]

Quote from Buy1Sell2:

A trader makes more by removing the whole position and buying the pullback--not by removing part of it.

Not if the position is removed from being stopped out

 

[Buy1Sell2]

Removing entire position and reloading enhances a trade idea. Removing partial position and reloading enhances the psyche.

 

[ammo]

Quote from Buy1Sell2:

Removing entire position and reloading enhances a trade idea. Removing partial position and reloading enhances the psyche.

printing this over and over may enhance your psyche ,it's wearing me out

 

[Buy1Sell2]

Quote from dealmaker:

Scaling in and out is a higher probability trade however, its hard to be successful at this doing short term trading situations eg day trading 5-10 minute intervals, its much better for swing and position trading.

Math is the same regardless of time frame. Scaling in and out is inferior to all in all out over the long haul.

 

[Expect Positive]

Quote from Buy1Sell2:

Scaling out is inferior behavior. When we have a winner, it makes more sense to let it ride. Will that cause us to give back profits sometimes? Yes. However, it will keep you in the really big winners and more than offsets the savings by scaling out.

--The reason folks scale out is many times due to the fact that they took a larger position than they were comfortable with initially. In effect, they were wildly overextended. The scale out feature simply gets them back to where the total position is now of a more correct size for their account size and comfort level. In summary, they were scared when the original position was on and now have been lucky enough to get some profits and feel they can let the rest run. What happens though when the initial trade goes against? --Sometimes they let the whole trade run as losses mount. -No, it's better to size correctly and let it run to where you can exit at a time of your own choosing (borrowed line from George Bush). No sense being a weak hand.

Conventional Wisdom says you're right. Actual historical testing says you're wrong.

 

[Buy1Sell2]

Quote from Expect Positive:

Conventional Wisdom says you're right. Actual historical testing says you're wrong.

FALSE

 

[volente_00]

Quote from Buy1Sell2:

FALSE

Had you scaled out half of your ES short at 1070 today you would have more profit once again.


TRUTH

 

[Buy1Sell2]

Actually--if I had removed all the trade at 1070, I would have been more profitable than if I had scaled-- If it makes sense to take some off, it makes sense to take the whole position off.