Everyone I Wanted to take some time today to talk about a topic that I get asked virtually on a daily basis and several times a day which is how to properly scale in and out of positions. Now, this is something that I do quite a bit just because I'm a low frequency trader, right? I'm not trading three, four, or five times a day I'm typically trading one to two times at the very most. And because of that I need to be able to extract the most profit I possibly can out of every single trade I Take While every trade is not going to be a winner or even a big winner, it's still important that you have extreme focus and you strive to again extract the most that you can. There's really only one way to do that, and that's by pressing your trades.

And pressing your trades essentially means that you're adding into the trade you're adding into the move. You're looking for that explosive momentum move to occur. and in most situations you are adding to a position when most people are probably taking profits. But remember that's once you're able to understand and grasp grasped the concept of this strategy, you will be able to greatly magnify the profits that you'll be taking in, right? You will be looking for homerun potential trades that have potential of moving in huge ranges.

And by pressing into those trades and looking for those big momentum moves, you're going to realize huge profits right now. Recently we traded a stock that gave us a really good opportunity to actually press into the trade and extract the most that we possibly could. And it's a really great example of the the strategy in in Motion, right? So I Want to take some time to explain both sides of it right? How do you actually press into a trade? How do you scale into a trade but then also how do you scale out of the trade? And when do you start of doing that? It's definitely more on the advanced side of trading, but it is one of those topics that once you develop a bit of consistency in your own trading with your initial strategy, this is something that you will definitely want to explore because again, this is where you will greatly magnify those profits. But as a warning, please don't try to do this if you are a beginner trader because this will only complicate your journey to become successful in a short period of time.

So once you develop some consistency, this is a time to actually start exploring the scaling of positions because again, it will bring you much larger wins once you're able to successfully integrate it into your approach. So let's take a few minutes and I Want to definitely break this down as clear as possible for those of you that are interested in learning a little bit more about scaling your positions properly. So we're gonna talk about this stock here. Le VI Recent IPO you can see here on the daily chart.

We had a set up on this that we were looking to short. they had earnings release. They gapped down right, a setting support was coming into play, well identified a sending support we were breaking that we had to move down to this 2040 pivot and then we opened up into a huge window down here to roughly 19. So looking at this from a technical standpoint off the daily chart, it definitely had good potential to continue to break down, especially if you were to move into this huge pocket here because this would have provided a huge profit potential if it did get into this window.

So knowing that we had room to run and we had a good technical setup this is a stock I wanted to focus on and see if it gave us the ability to or the potential to take a trade and add into the trade and look for a big homerun winner. Alright so let's look at this trade from the open and we'll talk a little bit about how I traded this. I'm gonna walk you through the situation as to how I would add or press into this trade to create a much bigger winner than it would be with just a single entry in a single exit. Alright, so taking a look here, we're gonna switch to the fast timeframe and the fast timeframe is a really key factor to this because it allows you to get that granularity and clarity in price action so you can see what exactly is going on.

So what I use is a 24 second chart. I Know it may sound extremely quick, but once you have been able to watch this and understand how this works and how to use the pivots which I'll talk about in a in a future video, it really becomes extremely useful to identify which pivots to use to add into your trade or to scale out of your trade. Alright, we're going to talk about that here now. So what do I look for for my initial entry? The first thing I'm gonna look for on my initial entry is a pivot in the direction I'm looking to trade.

it's really important. Again, that's a pivot in the direction I'm looking to trade since this stock was set up to the short side. All right I want it to look for a lower pivot high in the direction I wanted to trade which is to the downside right? So that means I would want to look for a lower pivot high. So if we look at this stock from the open and we see that we get the initial move down, we initial move back up.

There's no signal here yet. All right I know it flushed down I know it popped back up. but again, there's no signal here to either go long or short right? so we have to wait for is either a higher pivot low or a lower pivot high. But again, since this trade has setup to the downside, we want to wait for a lower pivot high.

Alright, so as we move further into the open here, you can see we have a pivot high. We start to pull back down. Alright again, we don't have a pivot established as of yet. So continuing to move through the market open here, you can see that we start to get.

we move through lows right, move through lows right here, and then we start to move back up. And if this starts to be the point that we put in a lower pivot high, that's the point that you want to look for your initial entry. Okay, so what did I do? All right? I See that we have a lower pivot high. Now put in right because here's your first pivot high.

All right. here's your first pivot high right here. Okay, there's give me your first pivot high and then we make a lower pivot high. So once I see that we have that established, what I'm going to do next is: I I Got into the trade so I took the trade here I start to get in to the position I take my initial position which is about usually about 50 to 75 percent of my normal size.

Okay, so on this trade I typically like to take about a hundred thousand dollar position portrayed. so Venus is 20 dollar stock. It's roughly about five thousand shares. All right.

So first position I take is about 2500. The next time an add to it is that we can. Could we can further confirm that the weakness is there? which would be what right to take out the lows? So if we take out the lows I'm gonna add more to my position? All right. So continuing to move to move, Have it taken out Lows yet? Haven't taken out loads yet.

So we're waiting. We're waiting. Take out lows I add to my position. Okay, most people who take profits through this.

Why? Because they are looking for quick day trades that produce that produce income. Alright I Want Homerun hits? That's all I'm looking for. That's all I'm concerned with. because those the trades that are gonna give you the most potential and definitely will give you bring you those huge profit wins.

When the trade actually does start to happen, you know, really work. Alright, so move through the lows. I'm going to add to my position one more time now. if we have heavy momentum on a trade.

what am I gonna do next? Well the next thing I'm gonna do is I'm gonna look for a retest of the level that we broke. so this 21 30 level. roughly. if we retest and fail that I'm gonna add again.

Alright, not again. So here's the retest and fail. Well I'm adding again here. Alright, I'm adding again into my trade because why? we have a lower pivot high? Alright, so we start to move, start to move, and we're still in trend.

We're ok there. We start to break now. typically I add about two or three times and that's really going to be it. That's really going to be at depending on the type of range of stock at.

this is a relatively low price stocks. We can't expect a huge range move out of this, but we can still expect a good move percentage-wise which you know we'll give us a really solid win, especially if we take out these major levels and really open up. So now that I've added am I taking my initial trade, I've added on the lows and I now I've added again on the retest. Where do I look to start taking profits All right.

So to keep everything relative, keep everything very simple across the board. I Simply use percentage point moves all right. So typically at 1% and at 2% I'm looking to take off portions in my position. All right.

So my average is gonna be around 2120 since I took a position at 21:40 I took a position at 21:30 and then I riad it again here around the 2120 mark. So it's around 2130 is my average, so 1% from that mark right is about 20 cents. So as soon as we start to get down through 1% I'm peeling off part of my position. All right.

So as we go through 1% which is down here right right at this point, right here is 20 104 2103. This is exactly where I took my first piece off and I cut loose 1/2 All right, take 1/2 off 1% Good move and now I'm gonna do is that if we come back and we retest and we fail, there's very good potential that I will now add back into the trade again. Remember what I said at the beginning? We want to try to extract the most that we possibly can out of these trades that are working. Stick with what's working.

There's no point in moving on to something else that's on the stands or something else, some other stock that that's moving. If the one that you're in is working all right, stick with it and try to get the most that you can out of it. All right. So now I've taken off half I'm gonna wait to see if we get a retest and typically what I want to see on a retest is I want to see that we come back to test a level or we take out the recent low which we've done.

we have done neither here. We came back up a little bit of relief move, we didn't get all the way up. We also didn't take out lows all right. So we come back up.

come back up Boom right there We test the level and we fail test level when we fail. If we start to roll over from this down, back through this. I'm adding back my position. All right.

we're starting to roll back through. I'm adding back the half that I took off, adding back the half that I took off. Okay, so I add back the half that I took off 21. 10 or so is where I added on this.

my average brings it down to just above 21. 20. 20 cents is 1% That's room a little to take it off. again.

All right. We start to move over. Move down, move down. move down right through 21.

All right as we move down here. I Took off my position another half as we move through 20 90. All right. I picked up a little bit more profit there because again, we were rejecting.

Typically when you're rejecting, you're staying in trend. you can expect more lows to come. So I try to hold out and get a little more profit. So now that I've done that all right, I basically have had to scale outs and I've had to add backs.

So I've essentially taken two trains on this stock that have been both very profitable. So now I have a really nice cushion built up and I still have a half position left. then I'm gonna wait to see if we can really start to open up and this is where the homerun type of trade really starts to develop. All right.

So what I'm going to look for here is a huge roll over and see if we can break down through this next pivot if we can. Then we establish some other point that's is gonna be our final exit which is typically determined by either breakeven or a profit stop. and being that I'm this far in the green I typically like to use a profit stop on this at the most logical point which is going to be up near around be wet right? So as we move lower we we almost test it but we didn't get all the way down to it and now at this point in the day we're at past ten o'clock I Switch to the 5-minute Okay, we're past 10 o'clock I switch to the 5-minute you can see we come back up to V Whap on this, Come back up to view a up on this we test, we roll over again I'm still sitting tight with it. We now have a higher I'm sorry a lower high established here.

All right. So I know that this is gonna be my final out 21 15 or so. that's also a profit stop. All right, because my average is around 21 20.

So I know that it's either we break down through here and open up and make a huge move and get a really big homerun trade or we lock up several thousand dollars here on the stop out on the profit stop and we still have a very nice trade. All right. So as the day goes on, so to chop through the day here a little bit's we start a little thing we're going to break down. but we started to hold and what happened here is we started to grind higher, we started to put in higher lows and then we start to come through V Webb and 2110.

That's where V Webb ended up being. When I finally took this off, ended up just cutting it loose and we're able to lock up. I Believe we blocked up just over 4,000 on this trade, but that's because we were scaling our positions. We were pressing our positions instead of just taking profits on one single trade.

If I were to just trade this on one single trade, it probably would have been a thousand or maybe two thousand dollar trade. But because I was focused and because I was able to use those pivots in my favor as ad Mack points I essentially traded this thing two or three times doubling tripling my profits. Now if you couple that with a trade that actually starts to open up and become a really big homerun hit, you're going to again magnify those profits by several times and really start to see some huge returns. And what does that allow you to do? It allows you to trade a lot less and just focus on the big winners rather than trying to trade 10 15 20 times a day hitting daily goals.

Alright, so these pivots these lower highs as you're going through lows is how I scale in and out of positions. It's It's actually very straightforward. It just takes some time to establish some consistency prior to actually utilizing a strategy because it is a little bit more advanced. However, again, this can really change your trading and that you only need a couple trades a week to meet your your weekly or even monthly goals.

Alright, so hopefully that that helps clarify how I scale into my positions and scale help for me. I Found that this is a much less stressful way of trading rather than jumping around to several different stocks. I'd like to sit with one and focus and extract the most possible. So good luck to everyone that's going to give this a shot and if any questions you can always reach us at Warrior Trading Com.

Hey everyone, thanks for watching the videos! I'll continue to make sure that all of the watch lists as well as the recaps are available to all of you. Make sure you subscribe to Keep up to date on what's hot, what's not in the market.