There we have it… the coolest guide EVER on scaling in and out of your trades. Let’s see how much you 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 COMBINED positions is within your risk comfort level
- If you add to winning positions, always trail your stop to control the added risk a bigger position size brings.
- Calculate the correct position sizes and where you will add to/remove from your position BEFORE you enter the trade.
- Scaling into winning trades is best applied to trending markets. Scaling out works well in range bound markets.
So now you know the correct way of scaling in and out of trades. Always follow the rules and sooner or later, you will catch that one move that will bank you some serious money!