How Do Profitable Investors/Traders Scale Into Markets?

Hey Traders,

As mentioned previously, we spoke about liquidating longs at extreme prices and not buying highs. Buying low, selling high.

Since you will find it hard identifying just one area to trade, it is very beneficial to space out and get an overall average. This way it is possible to attain an 'average' low or an 'average' high price.

The reason why is simple; profitable investors and traders alike do not buy highs as a main strategy long term. It is statistically painful and going to lose you an awful lot of money.

Simply, it is better to be short Highs and out of longs accordingly. Again, statistically, the opportunity to re-scale in on falls will always present itself eventually, unless you are trading a highly manipulated asset with a one way system (or at least somewhat).

As Markets fall on rebounds from highs, 'scale in' zones present themselves at key FIB levels and also Key Price Action levels. These are areas where value is held for long term longs, rather than short term longs in many cases.

What would need to happen for a continued fall? Negative Market Sentiment.

A removal of the 'Risk On' environment that has presented itself and a reason for fear. US Economy not going exactly as hoped, the need for twists in rhetoric from the FED. Worries about literally anything will cause a removal of the risky money, and an inflow into the safe money.

For a turnaround back to highs, it would require a calming down approach from the FED likely tomorrow. Everything is OK, and everything is going to continue to improve. This kind of speech is what fuels investors to take risky invesments accordingly.

These sentiment twists always present themselves over the long term, which is why the crypto winter that occurred lasted such a long time. As of late, we have seen the other side of the coin.

Similarly to last time, profitable investors will have scaled into the markets on continued falls in preparation for investor confidence returning on positive Market Sentiment, and a correlated vast rise in the price of crypto assets and other risk-on assets.

These scale in orders must represent a split of risk inline with your equity and trading persona. There is no point in making them exceedingly large and calling yourself a 'pro'. Take your maximum willing size in one position, or over a portfolio, and remove your greed. Spread these seeds at areas where they are likely to bask in sun and water to grow to their optimum value over time.

Remember, HVA's like this are highly sensitive to fast changing market sentiment. Any further twist could cause a larger fall, or a larger rise. It is for this reason we space out entries over time, as we are never sure exactly when sentiment and bias will shift in one go.

Identifying Price Action levels to enter, or exit the Market is essential to an accurate long term trading plan. Such areas are defined by their inherent form, that being the structure of the area overall, as well as the individual candles within that area, viewable on every single timeframe as one.


Scaling in over time allows one to achieve an average price and spread their eggs, not put them all in the same spot too early on. This is a natural, logical and mathematical format in which to take any new investments on.

Attaining value is a core market principle for success. Taking bad deals isn't. Associating a basket of prices gives a large space to gain a better entry.