Scale In & Buy Stocks as they Move Up – NOT Down! [Lessons from the Greats]

Valuable tip… thank you Sasha.

Like some people pointed out, it all depends on what the stock does in the future. If at point X in the future the stock will be at 0, then averaging down or buying when it goes up, you will lose money in both cases. However, each strategy could be valid depending when you buy and for how long you plan on keeping the stock.

Your example are biased to your main point. The same stock you show would fail averaging down would have failed much more rapidly averaging up. Interesting perspectives but you assume traders have huge time horizons and that's not always true.

Sasha, Your videos are so educational. Truly learning so much from your perspective. Could you tell me what software platform you use to shoot your videos?

Affirmative… when my stocks down heavily to 40 percent then almost a month on stationary I sell it then buy rising stocks to recover losses gradually rather that waiting for uncertain recovery of prices…for me that is part of trading world…

Even if your scaling in on green these losing examples are still losing

The great collapse is coming soon. We will all scale in to a crash soon.

Thanks

Another Great Video Professor

One question . When starting a new position with plans to scale in going up what percentage of your account would be a good starting point, 2% or 3% or ??????

Great Video , Great Advice. Of course there are instances where things will not work out no matter what you do. No strategy works 100% of the time. Keep up the good work.

Gosh you got the bottom of AMD, at 2 to 18, hope you scaled in!

Agree!
I would think of scaling down as a day trade technique used only in specific situations and not used as a general rule for trading.

Keep it simple that's the key

Hope all is well! What percent would you suggest buying per trade? For example; my initial buy be of 60% of total then 20%, 20%.

Agree with the basic thesis. But I wish I had the crystal ball to see which stocks will go high and which will go down. LOL

Hey man. nice video. please send the link to get the free stock picks

Scalene Triangle

Patience and bankroll management are key. I can't wait for the next major pullback to come to steal good discounted blue chips stocks…

You're awesome! Love all your videos!

Your a really smart guy Sasha

I think a minor dip in the stock and you should buy the stock…..

and if it is going still down then book a loss and get out…

Maintain strict stop losses…

I have really applied your views on to buy the stock when it is going up…

And it has helped…

But at times the stock goes down five to ten percent although it had been rising at the moment you buy the stock and then it falls before you have reached a respectable profitable levels…

I think you should also make a video on when to sell the stock…

i.e to when to sell the stock if brought at higher prices or the idea to maintain stop losses……

What if you've been scaling up and the price falls out from under you? Your reasoning is based on anecdotal evidence not logic. Who falls for this?

Nice website. You probably have growth stock in your mind while creating this. On the flip side, we have Ben Graham's value investing. Do you have a video on diversification!

depends what you are trading you would be losing more money from commissions trading penny stocks etc.

wouldnt the average share price rise higher and higher by doing so ? and what if it starts going down ?

I'd wait for it to hit the floor then put in 10% or less. But if it is enron or any company comiting fraud and scandel then get out and kill all positions! profit or loss.

What about a conservative approach such as buying and reselling iteratively based on the continuous speculation, but rebuying by some factor (maybe double it)? For example, if I see the stock increasing and so I buy a share for $10 and then it becomes worth $20, sell it and by the next time it increases buy the new share (even though it will cost more and will lose a little it might be worth avoiding the risk of it completely dropping). When would this be a rational method of accounting for the risk of lost?

I like it when you show chart trends and explain…your the man sasha!

Sasha, thanks for this video. Can you make a video that focuses on fundamental analysis. Talking about Income statement, balance sheet, and important ratios like P/E , EPS, PEG and how the companies ratios compare to the industry and competitors. I like the idea of buying a stock at a discount, if its valued way lower to its competitors and industry.

The AIG Stocks example just contradicts your point because if you had bought stocks from AGI when it was going up then you would have ended up with a negative profit later on

Thanks for your insight Sasha. This particularly was a very helpful video as I always scale down. I have recently started watching your videos & must say you are doing a great job helping people not to lose money in the dirty stock market. I have myself lost a lot of money in stock market due to lack of knowledge. Keep doing the good work – good to see people like you are still alive. Thanks once again.

good explanation. I'll follow that strategy.. but I guess it would also be better if i have a target price? then hold then sell if it reached my final sell off target? anyway, kudos thanks!

what do you think about day trading instead of long term investing

hi sasha , how much did you make all in all as profit in the stock market ?