Should you scale out of positions?

[flamingoproxy]

@Grojar

Oh, I haven’t tried such a strategy yet

i wouldn’t - for the reasons explained here:

Taking partial proffits

it wouldn’t be, for me adding to winners makes much more sense to me than reducing from them as such respected trading authors as Van Tharp, Tushar Chande and Michael Harris go to such lengths to clarify in so many standard trading textbooks, it’s an inescapable reality that taking partial profits means that your position-size is at its biggest exactly when your risk is at its highest, i.e. right after you’ve opened the trade you might want to think carefully about that, perhaps…

@Grojar

I prefer complying with the risk management by proper calculation of positions and quite often use trailing stops

i always avoid that, also, for the reasons explained here:

Is it good to use a trailing stop?

i know you weren’t asking me, so please excuse me for interfering! for what it’s worth, if anything, i offer my own answer to that question i have four reasons (listed below very much in order of importance!) why it isn’t ok for me to use a trailing stop every single time i’ve ever tested it, over the decades (and i’ve really done a lot of backtesting and forward-testing of trailing stops, because superficially they seem so attractive!), i’ve found that everything i’ve ever done has perfor…

i think “both the above” are very easy and understandable mistakes from which many people wrongly imagine they benefit