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Scaling into commodity positions vs. lump sum?
I'm still pretty green in commodities and trying to figure out best practices for position entry. For something like WTI crude ($CL_F) or gold ($GC_F), with their intraday volatility, do most of you seasoned traders prefer to scale into positions? Or is it more common to just take a single entry based on your analysis? I've been experimenting with scaling, but sometimes it feels like I'm just chasing the price instead of committing to a level. Curious how others manage this, especially with larger contract sizes.
2 comments · 4 points
That's a great question. Personally, I lean towards scaling in, especially with the volatility in commodities. It helps manage risk and avoid getting whipsawed too much on a single entry point. Do you find your average entry price is better when you scale, or do you sometimes wish you'd just gone all-in on that first good dip?