Here’s a quick review of the rules to safely scale in and out of trades:


1. Always use stops.
2. Only add to losing positions if the risk of your COMBINED positions is within your risk comfort level
3. If you add to winning positions, always trail your stop to control the added risk a bigger position size brings.
4. Calculate the correct position sizes and where you will add to/remove from your position BEFORE you enter the trade.
5. Scaling into winning trades is best applied to trending markets.
6. Scaling out works well in range-bound markets.