scaling out Archives • Futures Day Trading Strategies

Posts Tagged Under: scaling out

A better way to scale into and out of positions


Scaling into and out of positions is a common practice traders use to increase their chances for success when taking multiple entries and exits on their trades. However, there are a few things traders typically overlook when it comes to scaling into and out of trades.

Usually, traders don’t follow a rule-based or thought out position sizing and risk management strategy. This unfortunately often leads to wrong interpretations of trade management opportunities and false risk management decisions.


Bad practice I – scaling out of trades

Most traders will probably have done this before: partially closing a trade where price has moved into your favor to realize some of the profits and also to take off some risk. Whereas this is a good decision when it’s backed by price analysis, most traders cut their profits too early. The fear of giving back unrealized profits dominates the thinking of many traders and they will

Read More

Scaling in, Money Management and Position Sizing-Deciding on the Number of Contracts


Today we want to address a trading mistake we see way too often – the “wrong” choice for the amount of contracts, which can lead to a number of trading problems. Most traders are not even aware that what they are doing is influencing their trading performance in a negative way.

After reading this article, you will see how the contract size influences your trading decisions in ways you haven’t considered before.


Why trading with 3 contracts is easier than using just one

Before we get started, we need to make a point. It is not so much about the exact amount of 3 contracts, but the general idea behind trading with multiple contracts vs. just 1*. Many retail traders, especially when starting out, are scared of losing money and then just buy or sell 1 contract to enter a position without knowing about the implications.

Although those traders believe that their choice is

Read More