Tackle Today: The art of scaling in and out
May 28, 2020
≈ Entry techniques for option traders ≈
Traders,
Options are one of the most popular products amongst individual traders. We use them for directional trades, cash flow trades, volatility trades and more. They can be quite simple, they can be overly complex, and it all depends on how you approach using them.
Last night, Coach Tyler Craig held a webinar on our YouTube channel where he taught the community how to use options to scale in and out of positions. It was a fantastic show where he explained the pros and cons to an approach like this.
When using scaling in techniques, it gives a trader the ability to build a position over several entry days instead of one static point. When done correctly, this can increase your probability of profit (POP). It also makes it a little easier to pull the trigger when you know you are going to be starting with a small position, with the intent of building into a bigger or more advanced position over time.
Whether you use Options Spreads, or individual contracts is up to you. But good money management principles and rules can help any trader build a better entry and exit system. One of my favorite parts of last nights webinar is when Tyler talked about being humble with your entry point where he explained that ‘I love tactics where I assume I’m going to be wrong and try to improve my odds.’
Increasing your probability, increasing your odds, and reducing your exposure to risk are all fantastic characteristics of any trade. If you haven’t had a chance to watch this webinar, it’s a must see. It’s linked in the video of the day below, or you can find it on our channel: https://www.youtube.com/c/TackleTradingTeam
Chart of the Day
NFLX
During last nights show, Tyler used an example on NFLX with it’s recent retracement on how a trader might build entries over time through scaling in methodology.
Video of the day
The Art Of Scaling In And Out
If you missed last night’s webinar with Coach Tyler Craig, you can catch the replay here.
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club 8:30 PM EST
Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
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