Should You Scale Into Positions or Not? Pros ✔️ and Cons! ❌

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The pros and cons of scaling into a position. Should you scale into trades or not? You would scale in when you have a situation where you have a zone of interest where you'd like to buy (or sell) a market. You don't know the exact point where the market will turn in that zone but your thesis is that the market will turn at some point in that zone. You have some decisions here. You can either start buying at the top of the zone or at the bottom of the zone or you can even scale your position throughout the zone. OK.

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👇 Do you scale into a position when trading, if so, how do you decide how much to scale at each entry? Let us know in the comments below

[lombardo]

Am trying out this this month. Another disadvantage is the market going the direction you want while you are at the smallest size .

[nich]

Great Video. I do this all the time with my commodity positions...constantly trying to strengthen my position. The one simple thing I have learned to make a rule to always start off a position with a very small trade. It's like dipping your toe in the water. After you do that you wake up and get fully engaged in the overall trade. If it behaves right, then I'll put on size. The one simple rule prevents me from any large losses. The hard part is feeling like you've missed profit if the trade is right on and it moves in your favour quickly, but better to not make money than to lose it.

[geonerd]

I do this all the time with my swing trading. I break my capital into 5 or 6 'chunks' and usually buy 2 when the price drops into the top of the zone. If the price continues down, I'll try to guesstimate a new 'max possible low' (little more than a WAG) and buy 1 chunk at each remaining benchmark. If the price reaches a "too good to pass up" position, I'll raid my secondary account and buy another few chunks. On the way up, I'll reverse this, selling 1 or 2 early, but holding some of the equity as long as possible, trying to milk the most of the swing. In shot, I try to have a sensible plan that will cover the stock unexpectedly going up or down at any time. Always save a little $ to buy a dip, and always hold a few just in case it breaks out. With two 'pet' companies to chose from, I can usually find a decent buying/selling setup at least once a week.

[edexter]

Loved the video it made it seem less exotic. Nice key word for me to look for.

[AlexRiding]

Almost always starting to buy on top of the zone then average down if it continuous to go lower, otherwise increase position on the way up. Conditions? Key market structure, clear entry sign, no fight against the trend or the funds. SL? No need 90% of the time.

[marcosmits]

You are the best informing people to trade properly. Thank you!

[mkhdevelops]

Do you set the same stop loss as the original position or different stop losses ?

[ronakpatel]

I would Limit buy half positon at number 1 and if price does not hit number 3, i scale in remaining half at the earlier price.

[VicDamoneJr]

I feel like scaling means you weren't confident to begin with in your initial purchase

[HDdarthduck]

Was interesting to see that you do not always necessarily want it to hit your lowest planned fade, even though it’s there as part of the plan.

[WmsYTpage]

So far, my most successful intraday strategy has been to enter just after the pullback from an initial range breakout, with volume and incoming order flow to support the trend. That way there’s confirmation of previous s/r becoming new r/s, and a far greater likelihood of continuation into profit. Buying the dip in a range has usually just got me bounced around in the fight and losing as often as winning. But I’m new and open to feedback, ?

[anthonywashington]

I love your videos. You always describe the topic in detail and talk about it's practicality. Two thumbs up👍👍

[warrenapepuffet]

I think this is a more advanced techniques, I think one needs to have a rather strong inkling that it will go up in the future, but it will some time to do so with all the congestion and all

[arni]

This is the only way if account is small, this way we can have perfect sl and also r/r will be suitable

[bassfx]

Interesting topic not much, content on the internet about scaling in. I can see this working as a scalper on intraday time frames. On D1 charts you can easily identify your entry points. Identifying winning entries is the easiest part of trading. Knowing how to manage and exit trades is how you become a profitable trader. Another longer term scaling in strategy is called 'dollar cost averaging.' You can apply this concept to your trading on shorter time frames.

[useraboard]

Wait ! Give me the time to watch yours ideos guys :D you guys upload faster than we could look :)

Drunken tonight, i guess the whole poverty alwell, drunken tonight 🙈 drunk for about 2 to 3 litres beer, and i never drink so.. hoho

[Krogzaxants]

Love to average down my positions into quality dividend stocks to receive dividends and sell them higher again.