Hi, Jonnycake, yes I have read Mr. Glett's book, and yes He has some good points on why not to scale trade. One being that you sell of your stocks that are going up and invest in stocks that are going down. He gives the example of one stock going bad, forcing you to sell all your good stock and invest all the money into the stock that is going bankrupt. How ever if you follow Mr. Lichello's book this would never happen to you. He says you decide up front how much of your money goes into each stock, so if a stock does head south, it will not drag your portfolio with it. You will read on this board lots of talk about Deep Divers, these are stocks that have no more cash left to put into the stock, and are trading at a price far below AIM's trading price. Some people do invest more money into these stocks, normally they take a very hard look at the stock before doing so.
Scale Trading or Reverse Scale trading, which is better? I think you can make money ether way. How ever Mr. Glett's book is risky in another way, he advises using margin, and not selling until the price falls back to the last level. He did not show what would happen to the profits that you had. I recommend getting out the old pencil and finding out. You will be surprised.
Come see me at Systematic Investing group #board-966 lets talk formula plans.