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Bravetotrade
Nov 22, 2021 9:31 AM

POSITION TAKING TECHNIQUES Education

Nifty 50 IndexNSE

Description

Scale In: means buy more shares as the stock progresses in your direction. Its better to buy 50% position initially and then buy 33% and 17% as the trade favors us. One may also buy in three equal parts of 33% each.

Scale Out: means exiting from a profitable position in pieces. Its better to sell 17%, 33% and then 50% to take the full profit potential of a trade. Some traders prefer to sell in three equal parts of 33% each which is perfectly fine.

Average In: means adding more shares into a losing position.

All In - All Out: means buy all shares in a single trade and then sell all of them in one trade while taking profit.

Its a good practice to trail stop loss as the first part of profit is booked.
Generally its not preferred to average in a losing position but its still a very common practice among retail traders.

I hope this information will be useful for some traders/investors.
Regards

Comment

# Avoid averaging if you can
# Scale in if you r not sure about the trend/trade
# Scale out when u still want to squeeze maximum out of a trade
# Most new traders like to use All in and All out

More or less it's a personal preference.
Comments
amishdb
Liked it, Thanks for this technique
Bravetotrade
@amishdb, welcome
bonhardy19
But when to use which techniques
Bravetotrade
@bonhardy19, see the update section.
architk
This is helpful. Thanks for sharing. keep up the good work.
Bravetotrade
@architk, 👍
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