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Scaling-In (If I’m Late to the Party)

QuestionsCategory: QuestionsScaling-In (If I’m Late to the Party)
itsdubc asked 7 years ago
Hi Pat/Owen, I just became a VIP member here and I'm already learning quite a bit, so thank you guys so much for the knowledge! The recent position-sizing/gap-up video was really helpful but I had a question about the scaling-in portion. I seem to remember reading somewhere that when taking a long position, you shouldn't buy if the stock price has already moved 5% past the ideal buy point, as this would be "chasing." So with the scaling-in/pyramiding strategy explained in your recent video where you take a 50% position on initial breakout, then add a 30% position after the price moves 2%, and then the remaining 20% of the position as the price moves another 2%, do you still recommend using that strategy if the initial 50% position can't be filled close to the ideal buy point (thereby risking that the average buy price for the entire position ends up being more than 5% away from the ideal buy price)? I hope the question makes sense and sorry for being so long-winded! -Chris
1 Answers
Avatar photoOwen Staff answered 7 years ago

Hi Chris,
Video response from Pat...
https://youtu.be/Zx5bBHS9kXA