Kardec Trader shows how to scale out of winning trades using price action and volume. Start with $30,000 to hold $10,000 winners, and use mental trailing stops at prior support and resistance levels to lock in profits.
The way I increase my position size is, let's say if I'm going in with $10,000, and by the time I scale out, I'm holding the winning trades, $3,000 position. And let's say my end goal is to be able to hold $10,000, I need to be able to get to 30,000 as my starting position size. So when I'm scaling out, I can get to the point where I'm holding 7 to 10k of my position size as a winning trade. Because when you start to scale out, you go from here to here. You become more comfortable, and you're not really constantly looking at your p. L. You're more focused on the chart. What' happening on the chart? Is the stock still moving in my direction? Do I have volume supporting that move? Is there interest in that new price level? All of that? The answers to that question is yes. This position, you can hold this until you get stopped out. Yeah. And I also implement something called a trailing stop, but it's a mental stop. So as the slice takes over a new level, the previous level, which was the. The resistance or support, that's my new stop. And I just keep increasing it until it pulls back. Test that level. And at that point, if I see that it's not holding now, this is where I exit the final position. Yeah.
