Progressive Exposure
Ameet Rai
Electrical Engineer and Swing Trader focused on achieving super-performance. Through extensive studies of previous super-performance stocks and proprietary data-based research I provide guidance for new traders with an emphasis on building processes and teaching traders how to think and trade for themselves.
January 11, 2025
The concept of Progressive Exposure is often discussed among Swing Traders. I explain how I use it in the video below with a few examples.
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🚦 Understanding Progressive Exposure: The concept involves gradually increasing market exposure during favorable conditions and reducing it during adverse situations, akin to adjusting speed while driving.
📈 Phases of Trading: There are two critical phases in trading: the consistency phase, where traders develop a feel for the market, and the performance phase, where they trade based on instinct and previous experiences.
📊 Static vs. Dynamic Position Sizing: In the consistency phase, traders use fixed position sizes. In contrast, in the performance phase, they adapt their sizes dynamically based on market feedback.
🔄 Importance of Trade Logs: Maintaining a trade log is crucial for understanding past performance, identifying momentum, and making informed decisions about adjusting position sizes.
⚠️ Caution Against Complacency: Traders must avoid becoming complacent after a series of successful trades and should be prepared to increase exposure when the market indicates a favorable environment.
💰 Risk Management: The importance of managing risk by adjusting position sizes according to market conditions and prior trade performance.
📝 Continuous Improvement: Reflect on their trading practices and seek improvement through consistent analysis and adaptation.
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