Scaling in is a trading strategy where positions are built gradually over time rather than entering the full position size at once. This approach allows traders to average their entry price, reduce timing risk, and adapt position size based on market confirmation. Scaling in helps manage uncertainty about optimal entry timing while maintaining strategic direction.

Scaling in strategies require predetermined rules for position sizing, entry intervals, and maximum position limits to prevent overexposure. This approach can improve average entry prices in favorable market moves but may result in missed opportunities if markets move quickly. Understanding scaling techniques helps optimize position building and risk management.

Real-world example: A trader planning to buy 10,000 shares of Apple scales in by purchasing 2,500 shares at $150, another 2,500 at $148, 2,500 at $146, and the final 2,500 at $144, achieving an average cost of $147 instead of the initial $150.