How To Get In Frame Of Mind To Scale In

The short time frame and the huge loss generated Tueday got me thinking...

I know the only way to make a fortune is to be able to override a natural instinct (of mine for sure anyway). And that is to NOT be tempted to take profit when there's seemingly no intuitive reason for a direction to continue. Everytime I want to take profit because price has increased say 30-40 pips over 1 hour I should be increasing size. NOT reducing it. After all the profit is saying: You're right on direction of market.

I want to replicate my losing trade strategy but this time as a winning trade of course. If you read yesterdays post you'll know what I'm talking about.

But I'm fighting the strongest instinct I have, which is to think that I need to take winners when they get to a certain size of say 400-700$ in my case.

In terms of EURUSD I need to realise that we will break out of the 1.3750-1.4250 channel at some point. When that happens I need a decent stake built up by the time we get to either side of the channel. So at 1.41 for example I should be taking a smallish position long (1). At 1.4150 I should increase it (2). And at 1.42 again (3). Then when 1.4250 breaks I should increase to (5). This will then grow just as fast as my loss did when the real breakout occurs. (This is just an example of the tactics I should be employing)

If anyone out there knows someone blogging or writing about this type of strategy (scaling) - I'd love to read more. These are the guys that are getting the jackpot!


But things I must remember: If 1.4150 proves as resistance I should reduce and take a loss on the (2). I must never let the position (2) be able to take the profit (1) generated at that point. I can loose on 1 lot but never again on the 2nd! This is the way I was thinking when I ballooned my loss and this is the way many big fortunes have been lost be speculators and rogue traders. Patience and steady or sustained increasing of bet size.