📉📈 Hey traders! Remember my $600 blow-up? A huge part of that was going full send on a single entry. Trying to nail the absolute bottom or top is a fool's errand; it exposes you to immediate reversals and often forces emotional exits.
Instead, let's talk scaling in. For a long, instead of putting 100% of your desired position at $20, try splitting it: 33% at $20, another 33% if it dips to $19.50, and the final 34% at $19. This gives you an average entry of $19.50, significantly better if the market eventually turns around, and each individual entry carries less risk. You're giving your trade room to breathe and proving your initial bias.
Scaling out is just as crucial. Once you're in profit, say up 2%, consider taking off 25% of your position. Up 5%? Take another 25%. This secures a...
Instead, let's talk scaling in. For a long, instead of putting 100% of your desired position at $20, try splitting it: 33% at $20, another 33% if it dips to $19.50, and the final 34% at $19. This gives you an average entry of $19.50, significantly better if the market eventually turns around, and each individual entry carries less risk. You're giving your trade room to breathe and proving your initial bias.
Scaling out is just as crucial. Once you're in profit, say up 2%, consider taking off 25% of your position. Up 5%? Take another 25%. This secures a...