What Is Ladder?
Laddering is the technique of placing multiple orders at incrementally different price levels rather than entering or exiting a position all at once. A buy ladder might place orders at $100, $95, $90, and $85, gradually building a position as price declines to each level.
How Ladder Works
Laddering can be applied to both entries (scaling in) and exits (scaling out). Entry ladders reduce the impact of bad timing — if you're wrong about the exact bottom, you still accumulate at reasonable prices. Exit ladders lock in profits progressively — selling 25% at each target level ensures you capture gains even if the full target isn't reached.
Why It Matters for Traders
Laddering is superior to all-in entries/exits for most traders because it removes the pressure of perfect timing. A 5-rung entry ladder across a support zone captures a better average price than a single market order, and the psychological comfort of averaging in makes it easier to follow your plan without hesitation.
