The Great AdapterA: I would say I try and scale most of the time. But then there
are times it’s clear that I’m going to lose or need to bail quickly. I
don’t really scale out when I’m losing. I just bang out.
Q: So you don’t average down? You just take your loss and go,
right?
A: Right.
Q: But if you’re in the money, you give up maybe half the position
to bank some profit and then try to milk the rest?
A: Yeah. Over the years I’ve been able to enter and sometimes
add to the winners.
Q: Really?
A: Before, when I held a position and it was going my way, I always
used to lock it in, bid out, offer out. Now if it’s early enough, and I
think I’m really right and see something shaping up, I will add to
it early on.
Q: When you add, do you typically add same amount of size,
half the size, or do you have any kind of parameters as to what size
you would add on when scaling up?
A: The smaller stuff, anywhere from half to doubling my position.
The higher price stuff, half at most.
Q: So this way if it comes in, if it starts to go back against you,
you can at least get out or break even, right?
A: Right. I mean, obviously, there are cases where breakeven
doesn’t appear [laughter].