NASDAQ:TTD   THE TRADE DESK INC
7.20.20 TTD Taking a follow up look at this bullish market that corrected over 60 points lower and how we could evaluate the transition, and know where the buyers and sellers are, and manage a trade. I explained how a long trader could manage a 60 point correction using scaling techniques and neutralize and even make some money. Discussed risk advantages for the buyer vs the seller.

Comments

Hi Scott - Yes this is really good learning for me being novice trader to understand the chart and support lines... I am exactly in the situation of buying at top and holding the fall - but in the meantime I am trying to learn the scaling technique to reduce the loss! Thank you.
Reply
@asheth00, In my view...it takes MORE money and more skill to be profitable. It can have more tax consequences, and bigger losses. Practice carefully before you risk capital. That said, I believe the market reflects the algorithms of scaling and I think high frequency trading and patterns reflect scaling...but this might be B.S. on my part ( but I hope not ). Adding to a losing trade and taking a loss on the whole position is a horrible experience for me. Missing an opportunity ( buying miners when I "knew" it was a great opportunity, but I didn't take the trade) is an unpleasant experience...but in one case you lose money and in the other you don't. Build capital first before you scale ( and I don't mean put twice as money in your account because you have more money )...but study hypothetical scaling patterns...even if you are trading one position. It's great practice to develop a feel for price action....with a lot less stress. I find using techniques that I am not sure of because I haven't thought about it enough in real time...can be very stressful and counter productive. If there is one skill that I think is more important...it is to stay in a good trade that is moving your way and using fib extensions to reach the next target before you take a profit.
Reply
asheth00 ScottBogatin
@ScottBogatin, thank you very much for detailed information and insights.. I see that you are right about scaling the position.. I am trying to manage the trade using covered call against the position and sell the position and buy again with selling puts again next week to reduce the loss.. but still not able to execute successfully this way as at times become greedy!! Again thank you for the insights..
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out