Should you scale out of positions?

[Jungletrader]

I used to see traders do this all the time .
Using a trailing SL was widely advocated too

[ianmitch]

In trading, the main thing is methodical and the ability to quickly analyze information. It is necessary to correctly understand the market movements and make forecasts.

[Akio19]

There is no benefit to partially close out a trade once it has been shown to be unprofitable, therefore scaling out of positions only makes sense while they are lucrative.

[Tretrader_1]

Thanks for the advice, buddy!

[ArnavDeshmukh]

It is a strategy that involves partially closing a trade and taking a partial profit while leaving a portion of the position open. Making decision o this strategy depends on the trading style , risk tolerance , and market conditions.

[reddawg5345]

When I first started trading I read professionals scaled in and out trades and that’s how they managed risk and maximized profits. I incorporated it into my trading and it’s very beneficial. It’s rare for my style of trading, for the price to just run and hit my target. So I capitalize on ranging and the fact that price ALWAYS goes up and down. Very simple.

[Grojar]

Oh, I haven’t tried such a strategy yet, I prefer complying with the risk management by proper calculation of positions and quite often use trailing stops which helps me to get more and more breakeven positions.
Still it looks nice, at least the description of it. Dunno the profitability rate of this strategy but if you state that there are many people who utilize it, then it’s probably lucrative enough.

[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