The Joys of Scale Trading
Days like today almost make me want to sing about the joys of scale trading.
Last Thursday December cotton dipped just below 49.50 where I had my buy order in.
Today is Monday and December cotton jumped up to just over 51.50 where I had my sell order.
So within 3 trading days I made $1000 (not counting commissions which are about $15 for a round turn) because cotton makes $500 for each whole point it moves up.
This is scale trading at its finest.
Cotton closed around 51.60 so I am ready for the price to drop tomorrow back to 49.50 and do it all over again.
The best thing about this is last week I spent less than 10 minutes total on trading.
For a total of about 8.5 minutes. Scale trading has got to be the least time intensive form of trading there is.
I think even to do a buy and hold takes more time to research the companies.
Yesterday I was reading about an investor who says that scale trading was the worst possible way to trade stocks. I agree with this completely.
I would never scale trade any stock, I don’t care what company it was I could never have enough faith that their price would come back like commodities have always done.
Never try to scale trade a stock, it is a great way to lose all your money, and that won’t make you sing about the joys of scale trading
Last Thursday December cotton dipped just below 49.50 where I had my buy order in.
Today is Monday and December cotton jumped up to just over 51.50 where I had my sell order.
So within 3 trading days I made $1000 (not counting commissions which are about $15 for a round turn) because cotton makes $500 for each whole point it moves up.
This is scale trading at its finest.
Cotton closed around 51.60 so I am ready for the price to drop tomorrow back to 49.50 and do it all over again.
The best thing about this is last week I spent less than 10 minutes total on trading.
- I woke up 5 mornings and checked CNBC for the prices I am following, 30 seconds X 5 days.
- I entered 3 or 4 orders, about 1 minute each order.
- I spent another 2 minutes looking over my orders on the index cards to make sure I didn’t forget anything.
For a total of about 8.5 minutes. Scale trading has got to be the least time intensive form of trading there is.
I think even to do a buy and hold takes more time to research the companies.
Yesterday I was reading about an investor who says that scale trading was the worst possible way to trade stocks. I agree with this completely.
I would never scale trade any stock, I don’t care what company it was I could never have enough faith that their price would come back like commodities have always done.
Never try to scale trade a stock, it is a great way to lose all your money, and that won’t make you sing about the joys of scale trading
