Whenever you want to add to your trade, you must have a plan.
First thing you must know how much you are willling to trade, how many shares. Second you must know what are you going to risk. Third you must know where are your profit targets. You have to be prepared.
I add in 2 ways:
-in the money, so basically after my feeler when the trade is working and i’m on the right direction I may add due to a technical signal or tape confirming
-out of the money, when I have a plan I can start scaling because I have a precise level that I’m going to risk(generally a resistance or volume level).
First example: I have a plan, trade each pop short and cover into wash.
Second example: Plan to add small out of the money having the 4level area as my guide, once confirmed on that second lower high, I’m adding heavy. Cover into dips
Third example: waited the stuff at 4.20, after that I wanted to see tape weaker, bids coming off the tape and shorted 4.10, cover into wash, readding on pop at 4 rejection, cover into wash.
