Scaling out vs. scaling in: what's your take?

asked by u/mpark · 1mo · 2 answers

Still trying to wrap my head around the best way to manage positions as they move. For those of you who scale, do you prefer to scale out of a winning position to lock in profit, or scale into a strong one to build conviction, or does it completely depend on the setup?

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Top answers

  • u/bsantoso· 2 pts· 1mo

    I prefer to scale out of winning positions, mostly because I've found my conviction tends to evaporate faster than my profits if I don't. Plus, a bird in the hand, and all that jazz.

  • u/sanjay_s· 1 pts· 1mo

    This is a great question I've been wrestling with too! I can see the logic in both, but I'm still trying to figure out if there's a general rule of thumb or if it really is just entirely dependent on the specific trade.

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