To Scale-in is an excellent technique if used correctly.
A few moments ago we exited our USD/CHF trade in profit. See the last blog post.
We all make poor trade entries from time to time; often they are not poor but merely a bet admission that goes against us for no particular reason that we can determine.
Our priority is to protect our account and to let any profits take care of themselves. Our last trade warranted, to us, a scale-in trade. To do so correctly takes some practice as to get it wrong compounds any loss.
However, to get it right provides a trader with options. Either to minimise loss or ambitiously take a reasonable profit.
From our previous blog post, we entered short yesterday afternoon from a reasonable trend entry bar. Unfortunately, this was not correct, and the trade went against us and back to the top of the trading range.
However, the head of the trading range provided an opportunity to scale-into the trade. Our aim here was not to breakeven but achieve a satisfactory reward to risk return.
A consideration was the USD interest rate decision later this evening (UK time). With that pressing, we would not want to be delayed in the trade allowing a pullback as we would typically do.