Scaling in and out is helpful for trading.

in #investment4 years ago (edited)

There are many scalpers who don't consider the growth of corportations or the scalability of cryptocurrencies around us. They just buy and sell stocks and cryptocurrencies at once.

In this case, if traders buy them in the lowest price and sell in the highest price, it will make much profits. However, if the market trend is continuously growing(bullish market), they will miss more profits.


I think it is hardly possible to precisely buy in the lowest price and sell in the highest price, even God is impossible to do it. Thus, if you scale in, you can use the cost averaging effect. This effect gives traders intangible effects.

It is helpful for them to keep their mind. So, traders can rationally judge when they are trading.


Can we sell in the highest price? As I mentioned before, even God is not able to know the highest price. Thus, if you sell at once, you will sell in early.

So, when you try to scale out like AI, you can rationally make your early investment back.


When the growth and scalability is increasing, scaling in and out is very useful.


Sometimes, buying and selling at once can be more profitable. Since there is not the precise answer that can make profits, you should consider trading strategies depending on situations 😊

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