Most traders do the same thing, they wait until the market tags their stop loss — they exit, take the loss, and move on. But what if there was a smarter way? What if a sub optimal entry didn’t have to mean a losing trade?
In this breakdown, John Locke walks through a powerful trade management technique that experienced options traders use to recover from poor entries, re-position at better strikes, and still hit their original profit targets — all while keeping risk firmly under control.
Click here or on the video below to learn more!
What Is a Scale-In Entry — and Why Does It Change Everything?
A scale-in entry is not your typical all-in trade entry. It is a deliberate, planned approach where a trader enters an initial position knowing that the setup may require a size increase adjustment if the position is pressured.
John is direct about this distinction: a scale-in entry is great in specific circumstances but is not universally a great entry. Scale ins are positions that are designed to be added to. The initial position is intentionally smaller, which gives the trader room to maneuver if the market moves against them — as it often does.
This approach requires discipline and a longer-term perspective. Rather than reacting emotionally when a trade moves the wrong direction, the scale-in trader has already planned for that scenario before placing the first order.
Key takeaway: A scale-in entry is only as effective as the trader who follows it. Without a clear adjustment strategy, it is just a small losing trade.
The Setup: When a Normal Move Can Stop You Out
One of the most important concepts John covers in this session is understanding what a “normal move” looks like for a given market — and building that expectation into the trade from the start.
On a scale-in entry, John acknowledges upfront that a standard market fluctuation is statistically likely to trigger a stop loss. Rather than treating this as a failure, he treats it as the first step in a multi-part trade management process.
This mindset shift is critical. Instead of asking “Did I get stopped out?” the better question becomes “Where is the best place to re-enter now that the market has shown me more information?”
How to Recover: The Re-Entry Technique
Here is where John’s strategy becomes a masterclass in active trade management.
After the initial entry gets pressured, John outlines a step-by-step process for re-positioning the trade to a more favorable strike — effectively recreating the original position at a better location and a better credit.
Step 1: Do Nothing — Until the Right Moment
Patience is the first tool. John waits for the market to show its hand rather than reacting to every tick. Once the market has moved and created a better opportunity, he acts decisively.
Step 2: Exit the Pressured Position at a Small Loss
Rather than holding a bad position and hoping for a recovery, John buys back the original trade at a small loss.
This is a controlled, intentional exit. The small loss is not a defeat. It is the cost of repositioning.
Step 3: Re-Enter at a Better Strike for a Higher Credit
With the market now at a more favorable level, John places a new short position at a lower strike — in this case rolling down to the 7310 level with additional contracts— and collects a higher credit than the original trade.
Step 4: Reduce the risk/trade size to original level ASAP and Let the Trade Work
Once re-positioned, John scales back to original contract size on the temporary relief bounce and allows the trade to play out according to the original plan.
The result? The same maximum risk of approximately $1,500. The same profit target of approximately $250. But now with a structurally better trade location and a higher probability of success.
The beauty of this approach is that the trader ends up back in nearly the same risk/reward situation — but from a better spot on the chart with more favorable odds.
Why This Is Not Just Averaging Down
It is important to be clear about what this strategy is — and what it is not.
Averaging down means blindly adding to a losing position in the hope that the market will reverse and eventually make the trade profitable. It is reactive, emotional, and often catastrophic.
The scale-in re-entry technique is the opposite. It is:
- Pre-planned — John knows before entering the trade that adjustment may be necessary
- Rule-based — the exit and re-entry points are determined by logic, not emotion
- Risk-defined — the maximum loss is always known and controlled
- Probability-driven — the new position is placed at a location with a higher probability of success based on market structure
- Any additional risk is quickly removed
This is active trade management at a professional level.
What Happens If the Market Continues Against the New Position?
John addresses this directly and without sugarcoating it. Full disclosure is part of his teaching philosophy.
If the market decides to continue to move against the new position after re-entry, the trader can exit at a small loss with a technical failure get back in — just at a less favorable rate. That is the tradeoff. The strategy gives the trader every possible advantage in the current moment, but it cannot guarantee the market will cooperate.
This kind of transparency is what separates serious trading education from hype. Understanding the risk of every scenario — including the worst case — is what allows a trader to stay calm and execute when the market is moving fast.
Key Lessons From This Trade Walkthrough
If you apply one concept from this session to your trading, make it this: getting stopped out it doesn’t have to be the end of the trade. It is often the beginning of a better one.
Here are the core principles to take away:
- Plan the adjustment before you enter. Know in advance that a scale-in entry may require repositioning and have a clear process ready.
- A small controlled loss is not a failure. It is a tool for getting into a better position.
- Re-positioning and scaling can quickly allow you to restore your original risk/reward in a more favorable location. You do not have to walk away from a trade just because the first entry was not ideal.
- Patience is a position. Waiting for the right moment to take action is as important as the action itself.
- Always know your worst case. If the market keeps going, have a plan for that too.
Learn to Trade Like John Locke
John Locke has spent years developing and refining these trade management techniques through real market experience and extensive backtesting. The strategies taught at Locke In Your Success are built for traders who want to move beyond basic entry and exit rules and develop a complete, professional-grade approach to managing positions in any market condition.
Whether you trade SPX options, iron condors, broken wing butterflies, or other market-neutral strategies, the scale-in technique is a tool that belongs in every serious trader’s playbook.
👉 Watch the full video breakdown to see John execute this strategy in real time on a live chart.
Disclaimer: This content is for educational purposes only and does not constitute financial advice. Options trading involves significant risk of loss. Always consult a qualified financial professional before making investment decisions.
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