I've always seen "scaling down" as more of an long term investor limiting losses strategy. Price goes against his/her position it would be wise to scale down and stick to the plan. But the question is: how far down to too much. As an investor if you price continues to fall and all you do is continue to scale down, eventually your equity will bottom out. So, I think one, two, maybe three scaled down positions would enable an investor to stick to the original plan/strategy but after three scaled down positions, I think it would be best to (hard) close out that position.
Intraday trading doesn't benefit from scaling positions. With intraday, you're either right about the entry or not. And in any case should close out the position and wait for the next entry around the corner. As an investor, you have some lieu way in your entries assuming you're strategy attempts to capture the longer trend. Intraday, you must be dead spot on, on every decision you make.
Intraday trading doesn't benefit from scaling positions. With intraday, you're either right about the entry or not. And in any case should close out the position and wait for the next entry around the corner. As an investor, you have some lieu way in your entries assuming you're strategy attempts to capture the longer trend. Intraday, you must be dead spot on, on every decision you make.