How to avoid scaling in becoming double down

Discussion in 'Risk Management' started by innovest_11, Mar 4, 2009.

  1. I have the habit of scaling in when buying stocks, but how to avoid to let it become double down? It seems strange to me how my habit of scaling in can become double down...
  2. gttrader


    Have a predefined plan:

    What price and size you will scale in.
    Keep original stop
    Risk management - how much is the maximum the trade will lose.
  3. Keep an Excel. Before you start your position, enter your scale levels and stop loss. Stick with this no matter what.

    Makes it a tad easier to stay disciplined.