Position sizing - scaling up... insights for day/swing trading stocks?

Discussion in 'Trading' started by KCalhoun, May 2, 2010.

  1. KCalhoun


    Hi -

    Quick question, I like using a position sizing strategy (start everything off w/<1% of account equity for day/swing trades), then scaling up once positions are in the money, with a trailing stop over breakeven to lock in a gain.

    I've found that position sizing works great in trending markets of course, like we've had til recently, but for choppy markets it produces a lot more small stops, which makes scaling up more challenging due to lack of continuation breakouts.

    Any insights on what's worked best for any of you, for position sizing (either momentum daytrading scaling into positions, or longer term managing trades for swings)?


  2. bigpapi


    As you pointed out trend is necessary if you do the math you can see yourself how easy it is to get stopped out once you start scaling in and the thing turns against you, same concept daytrading or swing trading you need a strong position with a high probability setup and the market in your direction
  3. TGpop


    i know this is against the thread, but forex trends more than stocks and so you're less likely to be stopped and chooped when scaling in,, just a suggestion but sorry if it ain't any help.

    edit: by the way i dunno if this helps but i've found that the indices trend more cleanly than most of the stocks anyway maybe you'd better trading the spy or qqqq.