Boris Schlossberg recently wrote an excellent article for Investopedia.com on the subject of "scaling up," the practice of adding to a winning position instead of "scaling down," which refers to the technique of adding to a losing position in the hopes of lowering the average price of your trade entry.
In my new book, Adventures of a Currency Trader, which should be released in early 2007, the lead character in the book employs the strategy of scaling up in order to reap fairly significant profits from a trade -- and I can't wait to share that story with you. I wish it didn't take so long to publish a book!
Anyway, I am a huge fan of increasing position size when you are right. This doesn't mean that I do it all the time. It doesn't mean that you should do it right now. But I think Boris has written an article worth reading. Here's the link so you can read it for yourself:
Is Pressing The Trade Just Pressing Your Luck? by Boris Schlossberg
