It is very common to see people scaling out half of their positions on a winning trade and moving up their stops to their original entry price levels. (this ensures that the trade cannot turn into a loser and at worst, will end up breaking even). I wonder if people scale out half their positions when a trade goes AGAINST them as well? Assume a 5% stop, does anyone liquidate half of their position when the trade goes against them by 2.5%? Wouldn't this strategy ensure that our total losses are cut by half? Why do people only scale out on a winning position? Surely if you enter a trade and the market goes against you (thus proving your entry wrong in the first place) you should seek to minimise losses instead of waiting for your stops to get hit? Wouldn't scaling out of a losing trade help with capital preservation? PS. For those who reply that they it is OK for the market to go against them at first (before reversing and turning profitable), that is why I say to reduce your position to half. In case the market DOES reverse and the trade turns profitable again, you still have half of your position to ride out (with the option of resuming your original size if you WERE right in the first place). Thoughts?