{"id":299,"date":"2010-07-21T12:47:04","date_gmt":"2010-07-21T16:47:04","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=299"},"modified":"2018-06-10T10:58:20","modified_gmt":"2018-06-10T10:58:20","slug":"scaling-into-trades-for-profits","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/scaling-into-trades-for-profits\/","title":{"rendered":"Scaling into Trades for Profits"},"content":{"rendered":"

At Active Trading Partners, we believe that nobody can predict exact bottoms nor tops, but we can certainly come close. In light of that belief, we \u201cscale in\u201d to our preferred trade set ups using 1\/3 tranches at a time. Using our backdrop of looking for waterfall decline entry points for reversal profits, we add in some Elliott Wave theory and Fibonacci figures to mix up our recipe.\u00a0 As we see a trade set up coming around the bend, we begin to \u201cScale In\u201d to our trades as each Fibonacci or Wave pattern is reached.
\nSamples are our recent trade into BGZ, which is 3x short the Russell 1000 Index.\u00a0 The Elliott Patterns we interpreted said the market rally would wane as we hit 1071\/1074, 1085, and 1092.\u00a0 As those areas were hit on the SP 500, we would purchase 1\/3 positions into BGZ, inevitably profiting from the overbought reversal to the downside in the markets.\u00a0 This reversal happened on cue on Friday last week, July 16th.\u00a0 Our BGZ position rose 8.5% in just one day of trade, allowing us to enter into a \u201cgreen\u201d profitable territory on our scaled in position.
\nScaling in eliminates the traders desire to let the ego over-take their emotions.\u00a0 By this, we mean your trading system is useless if your emotions can\u2019t be kept in check both on the downside and the upside.\u00a0 At ATP, we try to combat that by scaling into and out of positions, forcing ourselves to buy while others cry\u2026 and sell when they yell.\u00a0 It is extremely difficult to go counter-trend against the noise of the markets, but certainly if you plan to do so you must have a plan of action.\u00a0 Trading with emotion is a sure-fire way to lose money in the markets.\u00a0 Taking your time and being methodical with scale in entry points into a trade, reduces your risk of entry and allows for a much greater probability of profits, as well as greatly reduced losses on the trades in which you are wrong.
\nNever dive \u201call in\u201d into a trade position, no matter how confident you are of the entry timing, chart, and price.\u00a0 Always scale in methodically.\u00a0 Worst case the position takes off to the upside for you and you didn\u2019t buy a full position, but that is so much better than going all in one one trade and mis-timing your entry, costing your trading account major dollars.
\nDave Banister
\nwww.ActiveTradingPartners.com<\/a>
\nwww.TheMarketTrendForecast.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

At Active Trading Partners, we believe that nobody can predict exact bottoms nor tops, but we can certainly come close. In light of that belief, we \u201cscale in\u201d to our preferred trade set ups using 1\/3 tranches at a time. Using our backdrop of looking for waterfall decline entry points for reversal profits, we addMore<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121,89],"tags":[],"yoast_head":"\nScaling into Trades for Profits<\/title>\n<meta name=\"description\" content=\"Scaling into Trades for Profits\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.themorganreport.com\/blog\/scaling-into-trades-for-profits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Scaling into Trades for Profits\" \/>\n<meta property=\"og:description\" content=\"Scaling into Trades for Profits\" \/>\n<meta property=\"og:url\" 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