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Scaling In

Definition

Scaling In — The practice of entering a position gradually by adding to it in increments rather than committing full size at once.

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What Is Scaling In?

Scaling in means building a position over multiple entries rather than entering the full intended size at a single price. For example, instead of buying 1 BTC at $60,000, you might buy 0.25 BTC at $60,000, another 0.25 at $58,500, and 0.5 at $57,000 as the thesis confirms.

How Scaling In Works

There are two main scaling approaches: scaling into weakness (buying more as price drops toward support, improving average entry) and scaling into strength (adding as the trade moves in your favor, confirming the thesis). Scaling into weakness requires strong conviction and a clear invalidation level. Scaling into strength reduces average entry quality but increases probability of the thesis being correct.

Why It Matters for Traders

Scaling in reduces the impact of entry timing on overall trade performance. By splitting entries across multiple price levels, you reduce the risk of entering the full position at the worst possible price. It also provides psychological benefits by allowing incremental commitment rather than a single high-stakes decision.

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