Hello Trader,

Today, I want to expand the other side of the coin concerning trade management into entries.

While there are several entry methods and systems I want to share with you one of the more aggressive methods yet is also one of the most safest methods for allowing a trader to commit his or her capital while putting them in a position for maximum profit.

Scaling in is often associated with what is called ?pyramiding? which is to continue to buy and add to a given position. This is often how traders get themselves into trouble. To keep leveraging oneself without a system of complete money management is a trader just begging to have their account blown out.

Let me explain proper scaling in.

Lets say that you have found a stock that is found to have all the proper fundamentals and is setting up technically for a long position. The company?s management has preannounced exceeding the stock analysts projections and is a leader in it?s field.

You decide to invest $10,000 but you find yourself anxious about committing that much capital. So here is what you decide to do. You will commit $2500 at $50 a share and then hold till it reaches $60.

At $60 a share you buy another $2500 worth of stock and move you stop up to $55 which is breakeven at this point. Your next buy point is $75.

At $75 you buy another $2500 worth of stock and move your stop up to $70 a share which leaves you with a small profit if stopped out. Your system tells you your next buy point is at $95.

At $95 you use your final $2500 and buy the appropriate amount of shares.

As the stock approaches $130 you cash out all your positions and add up the totals.

You made $4,000 on the first buy(160%), $2440 on the second buy(98%), $1790 on third buy(71%), and $880 on the fourth buy(%35) which gives you a gain of $9,110 profit and a overall gain of 91%.

This is an important facet of money management so learn it well.

Good Trading,

Billy W. www.stockoptionsystem.com

3828 West Davis Ste. 308-108 Conroe, TX 77304