Millionaire TradersQ: Really?
A: Yes.
Q: When you have those kind of very, very long trades are you
scaling out? You obviously take one third off on an initial move just
to bank some profit?
A: Yes. Exactly.
Q: What kind of proportionality do you typically use?
A: What I like to do if, let’s say, I have 24 on, is to take five off
right away, then another five at 1.1 points, and then I’ll another
five at 1.9 points, and then I’ll start breaking it down into twos and
threes.
Q: Twos and threes. So basically the last third of the trade you’ll
just kind of let it float out there for a while?
A: Yes.
Q: And what happens is that even though you’re left with maybe
10 to 15 percent of the initial position, you may still be able to ride
the move.
A: Yes.
Q: That 10 or 15 percent has such a massive gain that it con-
tributes disproportionately to the overall profit, right?
A: Yes, exactly.