4 Outcomes To Any Trade

Good morning, folks —

Every trade has four possible outcomes:

• Big Winner

• Small Winner

• Small Loser

• Big Loser

Our job is simple: eliminate Big Losers, increase the probability of a Big Winner.

That’s why I scale into positions.

When we nibble, starting small and only adding to winners, we remove the extremes. The Big Loser is off the table. So is the Big Winner. We’re left with Small Winners and Small Losers.

But when a trade moves in our favor, that’s our signal to increase exposure. That’s when we reintroduce the potential for a Big Winner — this time, with confirmation behind us.

That’s the edge.

We don’t predict. 

We respond.

Let the market prove you right, then press.

This approach doesn’t just feel better, it shifts the odds in our favor. 

What Happens When You Scale

Our downside is capped. Small initial size keeps losses manageable.

Our upside is amplified. You add when there’s momentum at your back.

The result?

Fewer blowups. 

Greater consistency and a path to compounding returns.

Bold traders go in heavy and hope.

Seasoned traders play the odds, nibble and scale with intention.

Trading isn’t about predicting the future.

It’s about capital preservation and long-term appreciation.

If you enjoy this post, please share it with a friend.

Godspeed – Rosebee

_{Disclosure: For informational purposes only. Not financial advice.}