"Scaling out" is inferior behavior

Discussion in 'Strategy Building' started by Buy1Sell2, Oct 18, 2006.

Do you scale out of positions?

  1. I always scale out

    113 vote(s)
    14.1%
  2. I scale out most of the time

    228 vote(s)
    28.5%
  3. Most of the time, I do not scale out

    189 vote(s)
    23.6%
  4. I never scale out

    270 vote(s)
    33.8%
  1. traderrn

    traderrn

    All out is ofc superior to Scaling out, but if you never exit and are stuck in a trade for months, don't think you are making any money. LOL!

    Also, holding large positions without taking something off the table may be beyond most Trader's psych grade.

    Lastly, the Market doesn't move in a straight line, so do need to find critical areas to exit so that you can wait for the pull back and reload.
     
    #1431     Aug 29, 2011
  2. Buy1Sell2

    Buy1Sell2

    you are correct that scaling out is inferior. And so, it makes better sense on the critical areas that you speak of, to remove the entire position each time and reload the entire position.
     
    #1432     Sep 22, 2011
  3. ammo

    ammo

    that psychic crutch as you call it allows you to reload at better prices which you fail to admit or even think about,you are still wearing blinders or playing monkey here no evil,this is the most resounding fact in your feeble argument,you constantly play my way or the highway, the market rarely moves one way in a straight line,1987,2001,2008,at those moments your argument holds water
     
    #1433     Sep 22, 2011
  4. Buy1Sell2

    Buy1Sell2

    You are missing the point -- I have no issue with someone selling and buying pullbacks. It just needs to be done with full position taken off and then buying the pullback with full position. :)
     
    #1434     Sep 22, 2011
  5. ammo

    ammo

    partial reduction and reloading allows you to enhance a trades overall value,(lock in profits and improve the original price) while not getting flat before the ultimate target is reached,partially reducing a position to enhance at a better price and being wrong allows you to still catch part of the move you had previously targeted ,where removing the entire position to put the entire position on at a better price,if wrong you missed the chance to profit partially...unless as previously stated somewhere in this argument..you knew the exact top and bottom and you went all in and all out...i don't disagree with your style if you are a part time trader,but if you are full time ,partially reducing and reloading is much more profitable,as the market is very fluid and there are a lot of moves inside of point a,entry and point b exit to take advantage of
     
    #1435     Sep 22, 2011
  6. Buy1Sell2

    Buy1Sell2

    FALSE
     
    #1436     Sep 24, 2011

  7. increase the higher probability of a successful trade, not the highest skill level. highest profit can easily be increased by adding capital, but highest execution requires higher skills, which tops out after awhile.


    A trade that profits @ 18,000 is as successful
    As a trade that profits @ 21,000 (better execution)

    A trade eyeing 21,000 but tops out @ 18,500, then experiences a drawdown back to 8000
    due to human error, trade profits @ 9000 = (mismanaged)


    It feels great to teach the buy1sell2 :) how much has changed in 3-5 years.
     
    #1437     Sep 25, 2011
  8. ammo

    ammo

    have demonstrated it live 15 or more times in your journal ....you were there....talk to a fool long as you will,he will be of the same opinion still
     
    #1438     Sep 25, 2011
  9. Buy1Sell2

    Buy1Sell2

    Most are totally missing the point. :)
     
    #1439     Sep 25, 2011
  10. Buy1Sell2

    Buy1Sell2

    A trader makes more by removing the whole position and buying the pullback--not by removing part of it.:)
     
    #1440     Sep 25, 2011