Why not all in?

[RangeTrader]

That's really easy for most traders who know their stuff. If your trading a small part of your equity there is no emotion so you really can't lose a trade unless you try.

It's the emotion that gets people.

Quote from flipside21:

I have heard a trader taking $10,000 (a small part of his equity) and doubling that money for many consecutive instances, thus turning that into $300,000 in weeks, or $20k to $500k in a couple of months. Each time he would roll over all his profits and original principle into the next trade.

He is a true elite trader. An infinitesimal number of traders could perform such feats of trading genius. 99.9% of newbie traders who try that will blow up 100% of the time. Probably >90% of professional traders who try it will blow up at trade #2 or 3.

 

[Buy1Sell2]

All in All out is the proper method. However all in does not mean your entire liquid net worth. It simply means all in for the amount that you would like to commit to the trade/idea. Do not average in or average out (scale in scale out) ever. Get right.