What is your main strategy in taking a position? I would like to see some discussion on different strategies concerning scaling into a position or putting it all on at once. My strategy is different for daytrading and position trading. When daytrading I go all in with my desired position. When position trading(or swing trading) I seem to be scaling in when the market PROVES me right. I have been using a 3:2:1 ratio. I would like to see some other opinions/strategies. Good Trading!
When daytrading I will normally put the entire position on all at once. Sometimes I will scale out though. Occasionally I will add to my winning positions if I feel real strongly about the trade... Leland
Most of the time I find myself going in all at once, although sometimes I'll enter roughly half then the other half. This goes for intraday trading & swing trading. On the flip side I almost always scale out, typically one third to one half on the first exit, then half of the remainder further along, and finally the last bit when I think there's no more to be got. Sometimes while exiting, it may be my first exit is the best price, sometimes the middle or sometimes the last, depending on how the stock & market are moving. You certainly develop a comfort level with scaling out because you have taken some profits and can let the rest run. Or if it ends up a loser, I try to start exiting a portion if things go wrong, but then re-assess, etc. This way if I exit a portion at a loss, I still have some in case it reverses. I'm sure we've all experienced that, where you exit all of a losing position and the thing turns & rips!