 |
Definition of 'Scale In'
The process of purchasing shares as the price decreases. To scale in (or scaling in) means to set a target price and then invest in increments as the stock falls below that price. This buying continues until the price stops falling or the intended trade size is reached. Scaling in will, ideally, lower the average purchase price. If the stock does not come back to the target price, however, the investor ends up purchasing a losing stock.
|
 |
Investopedia explains 'Scale In'
Scaling in gives an investor the option of buying additional stock as the price drops. For example, if a stock is worth $20 and an investor wants 1,000 shares, he or she can scale in, rather than purchasing all the shares at once. When the price reaches $20, the investor could buy 250 shares right away, then 250 shares at $19.90, 250 at $19.80 and 250 at $19.70. If the stock price stops falling, the investor would stop scaling in. The average purchase price would then be $19.85, rather than $20.
|
Search results for 'Scale In'
-
http://www.investopedia.com/video/play/what-is-economies-of-scale
Is bigger always better? Learn about the important and often misunderstood concept
of economies of scale. ... Videos /. Explaining Economies Of Scale. ...
-
http://www.investopedia.com/articles/03/012703.asp
Read up on the important and often misunderstood concept of economies of scale. ...
What Are Economies Of Scale? ... Where Are Economies of Scale? ...
-
http://www.investopedia.com/university/fiveminute/fiveminute8.asp
Five Minute Investing: The Reverse Scale Strategy. ... Practiced consistently, the
scale-trading approach is a surefire ticket to the soup line. ...
-
http://www.investopedia.com/university/fiveminute/fiveminute10.asp
Five Minute Investing: Implementing Reverse Scale Strategy. ... Reverse Scale Strategy
Decision Chart. --. Company, Zeneca, --, --, -, Company, Hummingbird, --, --. ...
-
http://www.investopedia.com/ask/answers/05/logvslinear.asp
The interpretation of a stock chart can vary among different traders depending on
the type of price scale used when viewing the data. As this question. ...
-
http://www.investopedia.com/university/technical/techanalysis6.asp
... The bottom of the graph, running horizontally (x-axis), is the date or time scale. ...
The problem, however, is in the structure of the scale itself. ...
-
http://www.investopedia.com/articles/forex/06/ScalingUp.asp
... Follow the scale down strategy long enough, and you will eventually go broke. ... While
the scale up trade may indeed be very lucrative, it is also extremely rare. ...
-
http://financialedge.investopedia.com/financial-edge/1011/5-Ways-To-Get-A-Fair-Price-For-Your-Gold.aspx
... Watch the Scale Demand that the dealer weigh your gold in front of you where
you can clearly see the numbers on the scale. You can ...
-
http://www.investopedia.com/university/fiveminute/fiveminute7.asp
... step down our road to investment success involves briefly reviewing the worst stock
trading strategy I can imagine, a simple strategy known as scale trading. ...
-
http://www.investopedia.com/university/fiveminute/fiveminute11.asp
... bet that if you don't feel like you know what you are doing, then you are probably
right and would be well advised to start on the conservative end of the scale ...
|
|
