There are professional, profitable traders who scale out. The most successful professional, profitable traders, do not.
Pretty vague assumption on your part considering you do not know every professional profitable trader's pnl.
You are incorrect. Not because of your opinion being wrong, but because of dismissing a view that is different of yours as "wrong". By definition, knowing that traders have different risk profiles, use different time frames, etc , provides for multiple trade management approaches. In your premise you're not considering the emotional factor inherent to trading. Time in the market means risk, the longer you hold a position the more risk you're allowing. Unrealized gains are just that, unrealized until you cash in the profits. Locking up some profits on the way out while letting some of your position for further gains mitigates such risk. Again, some people might put more weight in the time issue than others, but that doesn't make one approach right and the other wrong. An overall better entry sure smoothes the equity curve, but so does scaling out of positions, and so does scaling in to positions. I'm positive a quick, backtest would demonstrate that. Many, many ways to skin a cat, but it is just plain ignorant to treat as "wrong" a different opinion than that of your own. BI
trading is not and should not be an "all or nothing" mentality. Take profits off the table when you have them. professional traders know this.
I know you're being obtuse for dramatic effect, and please be assured that it's all very entertaining. That aside, exiting a position "all-at-once" is more akin to "all-or-nothing" than is scaling out.
I agree with this. I try to view trading as a game of probability, and adjusting a position is required in order to manage the risk currently in the market. If the risk has increased, it would be prudent to take some back or hedge your position some. Sometimes it makes sense to take back the whole position if the risk is significantly against you. However, I do not believe in scaling out simply because it feels intuitively comfortable. IMO, that is not the right way to trade.
LOL dude who is this guy? B1S2 must be the greatest trader in the history of markets, I did not know that someone was out there that could absolutely hit the dead nuts high and low of each trade. Amazing. Write a book dude.
bro, totally depends on the type of trading you are doing. might make sense if you are trading smaller size or have a retail account where the commish is going to eat a significant amount of your profits. if you are trading size, makes more sense to take profits off as you go along(i.e scale out), putting it back on if/when it retraces, etc. a lot more production/profit in the long run.
A couple of items here-- One, we now have an admission that a person scaling out is taking a position that is too large. Secondly, you have made my argument for me by showing that had you kept all contracts to 700, you have made the most money. All in--All out--- Not All-or nothing as some have tried to change my philosophy to.-- Ishmael