To scale out or not to scale out,

Do you even scale

  • Yes,

    Votes: 14 73.7%

  • No, all or nothing

    Votes: 5 26.3%
  • Total voters
    19
When I'm not scalping ORB's or trading within the first 30 min, I like to have a starter position, then get one add if it sets up. For example: I buy 1 TSLA put at VWAP test/fail. TSLA then sells off some more, gets to LOD, then retraces to just above the 34, until it shows weakness. That's usually where I add. I only add to winners. Used to short stocks really extended off the 8ema, at resistance, and if/when they got more extended, I would add to position... 1 x 1 x 2 x 2 x 4. This strategy went really well but one day a trader I admired had a bad trade and lost over $20k. That day I switched back to trading long options. He was probably averaging $500-$700 a day minimum, and all it took was one bad trade. (stock was EXAS btw)
 
I think it depends on the specific trade and your style.

For a perfect swing if I take a great entry, and keep a very tight but realistic stop loss, with a realistic take profit... I'll go all in, and all out. In fact I'll have stops and limits and not touch it at all.

For a 4 dollar pump and dump I go full size entry, and then usually scale out. Ie if I'm lucky to be in for a parabolic move I have to take 50% when it's up like 20% in 5minutes - even if it still looks strong. Leave a bit in there to ride and see where it goes.
I caught two of these just last week, and thankfully I left 30% in to ride for another day. 60% trades they ended up.
 
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