Are you maximizing gains in this hot market â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â  â â â â â â â â â â â â â Good Morning! With the market as hot as it is, many traders are having huge success⦠You might even be thinking about [scaling up your position size](. But taking a larger position also increases your risk. So I have a smarter way you can approach sizing up⦠Scaling in. It can be a powerful strategy if done correctly. As someone who's been in the trading game for over 17 years, I've learned a thing or two about [how to maximize profits]( while minimizing risks. So today I'll share valuable insights on how to scale into winning trades effectively. how a hot sector and tech tools come together to create amazing trades here](. Sponsored ðUnlock the Future of AI Stocks! The AI revolution is just beginning. With developments spreading rapidly, small-cap companies could benefit the most from the next AI boom. So Tim Bohenâs team is going live to share the newest cutting-edge AI technology and show you the small-cap stocks theyâre watching right now! Don't let this opportunity slip away. Reserve your seat now and be at the forefront of the next AI boom! [Click here to secure your spot]( How to Scale into Winning Trades As a conservative trader, I recommend only adding to winning positions. By waiting for a stock to show signs of strength before adding to your position, you can minimize the risk of losses. When it comes to scaling in, you have to play defensively. Your primary goal is to protect your account. It doesn't matter if you're making a few bucks or huge profits on each trade â if your losses outweigh your gains, you wonât make progress. Remember, winners add to winners. Losers add to losers. Now letâs dive into more details⦠[[ratio] ]( Patience Is Key Patience is key when scaling into winning trades. Rather than rushing into trades based on emotion or FOMO (fear of missing out), wait for the ideal entry point. Then donât jump in with [maximum size]( If the trade goes against you, youâll take a bigger loss than anticipated. Instead, take a smaller position to start, then look to add more shares as the trade goes in your direction. When To Add to Positions Just because youâre ready to add [more shares to your position]( â itâs not a one-size-fits-all scenario. You should only scale into trades that are your best-performing setups. I like to add to winners using the rule of three ⦠Letâs look at an example⦠Say you buy a breakout as it crosses $1. Your goal is to sell at $2. So you would take your first position at the break above $1, then add at $1.25, and add again at $1.50 and $1.75. Then you sell your entire position at $2⦠So divide your goal by four and the first three quarters are where you enter and add and you sell at the fourth. But the biggest point of adding to winners is this: You must move your stop loss up as you add. Otherwise, all youâre doing is [increasing your risk](. Thatâs the biggest danger of scaling in that we want to avoid. Now letâs go over the biggest mistake traders can make⦠[StocksToTrade University members can watch my webinar on scaling into positions here](. The Biggest Mistake Traders Make While adding to winners is a good strategy to use as you gain experience⦠Adding to a loser is one of the biggest mistakes new traders make. Theyâre down in a position and they think they should add to bring their costs down in the hopes of turning the trade around. However, this is extremely risky and often leads to [blown-up accounts](. Instead of stubbornly holding onto losing trades, cut your losses and move on to the next opportunity. [[ratio] ]( Scaling into winning trades can be a valuable strategy for traders looking to maximize their profits. However, it's essential to approach this strategy with caution and discipline. By playing defense, exercising patience, and following a conservative approach to scaling in, you can increase your chances of success in the market. Remember, losers add to losers, winners add to winners â it's as simple as that. Have a great day everyone. See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade Sponsored Sponsored ACCESS NOW: Click to activate this complimentary membership gift and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( Recommended Membership Gift
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