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Snip:
Anybody have any personal experience using the methodology known as 'Scale
Trading'?
In my opinion scale trading is an accounting gimmick. You buy at 10, you buy
more at 9, you buy more at 8, you buy more at 7 and if it goes back up to 8
you sell the one you bought at 7 and tell yourself that you just made a
point. Sure.???? In your dreams!!!
I had a good friend that had over 100 profitable futures trades in a row
while scale trading and was actually down over $100,000 in his account.
Worst part was this was back in the days when you were only taxed on your
closed out trades so he not only went broke but he had to pay taxes on the
phantom profits.
Chuck
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