There we have it… the coolest guide EVER on scaling in and out of your trades. Let’s see how much of this information you have soaked into your noggin. Here’s a quick review of the rules to safely scale in and out of trades. Always use stops. Only add to losing positions if the risk of your…
Now on to the fun stuff. If you catch a great trending move, scaling into it is a great trade adjustment to increase your max profit. Since we all can’t be like DJ Khaled where all he does is win, there are rules to follow to safely add to open positions. So unless you are DJ Khaled, let’s go…
In the previous lesson, we discussed how to scale OUT of a trade. Now, we show you how to scale IN a trade. The first scenario we’ll cover involves adding to your positions when your trade is going against you. Adding more units to a” losing” position is tricky business and in our view, it pretty…
As mentioned earlier, scaling out has the obvious benefit of reducing your risk as you are taking away exposure to the market…whether you are in a winning or losing position. When used with trailing stops, there is also the benefit of locking in profits and creating a “nearly” risk-free trade. We’ll go through a trade example to show…
Now that you know how to set proper stops and calculate the correct position size, here’s a lesson on how you can get a little creative in your trading. For those trading multiple position sizes, you can get really flexible and creative on how you manage your risk by “scaling” in and out of your positions….