Author Topic: Something for the weekend  (Read 593 times)

Pipstar

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Re: Something for the weekend
« Reply #45 on: August 06, 2020, 02:02:56 PM »
Can I ask you a question @thescruff
I understand that you scale out of trades but Im sure Ive read or heard about scaling in. Is that a 'thing' or am I imagining it? It just seems counter-intuitive to me since, as price is already moving in the direction you want, each new entry would have less chance of success than past entries at earlier levels. Does that make sense?

thescruff

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Re: Something for the weekend
« Reply #46 on: August 06, 2020, 02:22:39 PM »
Over the years I have tested many different ways and for me scaling out makes perfect sense be it scaling with profit but I also scale out of loss , nobody knows how far a market will go so taking bits off as it moves means you are paid and reducing risk all the time. Yes if you hold to full target you may earn more but the chances of this are low so at the end of the week the scales out give better returns every time for me.

There is a theory for longer term trades of scaling in to positions as the trend emerges , ie every pullback if stays above  200MA add a little more , building a position. Great for investment but not sure how good on interday trading   
« Last Edit: August 06, 2020, 06:49:16 PM by thescruff »
The Scruffy Trader

Pipstar

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Re: Something for the weekend
« Reply #47 on: September 07, 2020, 04:07:07 PM »
Thank you Gary. You've explained it really well here and on YouTube and I get it now. I like the idea of leaving a small portion on after you've cashed most of the trade, just in case it goes mental overnight.  :)

Magyar

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Re: Something for the weekend
« Reply #48 on: September 08, 2020, 02:29:42 PM »
Even with my tiny $10 account I can scale. Maybe make 5c, then 10c on a trade. Not very much money but it all add up