Scaling In & Out

How to build a position in stages and take profits in pieces, why many traders add only to winners, and how to keep total risk under control while you do it.

You don’t have to go all in at once

Scaling means entering or exiting a position in parts instead of all at once. Scaling in can reduce the damage when a trade fails early. Scaling out can lock in profit while leaving room for a bigger move. Both are ways of managing uncertainty, because you never know which trades will become big winners.

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