Still trying to get my head around optimal scaling-in. For $NIKKEI, especially when it dips but the broader trend is up, I find myself adding. But sometimes I add too much too early, then the dip extends, and I'm underwater on a large chunk. How do you guys determine your tranches when scaling into what you expect to be a temporary pullback?
This is a great question. I'm new to this too and have the same problem with adding too much on what I think is the first dip. Do you use any specific technical indicators to help you decide when to add, or is it more of a feel thing based on the chart?
I've struggled with this too. One approach I've found helpful is to pre-define the maximum allocation percentage for a single asset and then break that down into 3-5 tranches with set price intervals or percentage drops. That way, you're not just adding ad hoc and can stick to a plan even if the dip deepens.
It's always a balancing act. Perhaps your 'temporary pullback' is just the start of a larger correction, making early additions problematic. What metrics are you using to define a 'temporary pullback' for $NIKKEI?