Most traders scale out wrong. This method grows a $10,000 position to $30,000 by increasing initial size so remaining winners hit $7,000-$10,000 after partial exits. Focus on chart action, volume, and price levels instead of watching profit-and-loss.
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, you know, $7,000 to $10,000 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's 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 know, again, you get stopped out.
