3:29 PM – After closing just below its 50 DMA yesterday, shares are clearly trading below that level again today. When a stock loses the 50 DMA, it signals weakening intermediate momentum. Selling 1/3 of the current position here to reduce exposure.

ULTRA Trader’s Tip: Scaling In and Out in Thirds

  • Positions are built and reduced in thirds, allowing the stock to prove itself before committing full capital.

  • This method reduces timing risk — you don’t have to be perfect on the first trade.

  • Scaling out in thirds locks in gains or trims losses progressively while still allowing participation if things reverse.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.