Scaling into winners—not averaging down losers—preserves your buying power

Andrew still remembers a day early in his career when he blew out his entire account on a single biotech runner. He chased it lower on a bad pullback, averaging down three times—not because he believed in the company but because he couldn’t bear admitting a mistake. Instantly, he wiped out 70% of his capital.

That brutal lesson taught him to treat losers like expired milk—you don’t add lemon juice to rescue it, you chuck it. Now his rule is simple: initial stake small, then add to strength only. If a trade goes his way, two out of three orders trigger and he rides the wave. If it goes against him, he’s off in a blink.

One September morning, he shorted a strong breakout only to see it turn into a raging squeeze. He sold half within seconds, moved his stop to break-even, and the rest cleared at a tiny loss. The whole episode cost him 0.1% of his account, not 5%. His bank balance didn’t break because discipline came first.

As Andrew often says, “Good trading is about cancelling losers, not rescuing them.” Behavioral science shows that cutting losses quickly builds confidence more reliably than any win streak. You’re not quitting—you’re simply choosing where to fight next.

Begin every trade with a modest share count, leaving dry powder to add only if your initial entry proves itself with a clear move on heavy volume. Never flip that logic to average down—you’ll just magnify your losses. Instead, lock in partial gains when you’re up big by selling half, then drag your stop to break-even. This simple switch—adding to winners, not losers—keeps your capital intact for tomorrow’s battles.