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Position Building: The Art of Scaling

In MarketQuants, we don't just "buy a stock." We build a position. Novice investors tend to go "all in" on a single idea. Professional investors scale in over time, reducing risk and confirming their thesis with price action.

This guide outlines the standard MarketQuants workflow for entering and managing a new trade.

Step 1: Discovery (The Leaderboard)​

Your journey begins on the Leaderboard. Instead of chasing news headlines, look for stocks with a high Composite Score.

  • Top 9 Focus: Start with the stocks ranked #1 through #9. These have already statistically proven they are the strongest assets in the market right now.
  • The Trend Check: Ensure the stock is rated BUY (Short Term and Long Term trends are positive).

Rule #1: Never fight the trend. If a stock is rated SELL, ignore it, no matter how "cheap" it looks.

Step 2: Validation (Diamond Score)​

Before you buy, validate the quality of the move using the Diamond Score.

  • Look for a high number of Gold Diamonds (8, 9, or 10).
  • This confirms that the price isn't just spiking randomly—it is closing near the highs of its weekly, monthly, and quarterly ranges. Institutional money is supporting the price.

Step 3: The Entry (DCA)​

Once you've picked a target (e.g., NVDA), click Buy Now to open the Trading Card.

Do not deploy your full capital at once. If you plan to invest $5,000 into this stock, start with a "Pilot Position" (e.g., $1,000).

  • Dollar-Cost Averaging (DCA): By splitting your entry into chunks, you avoid buying at the absolute top.
  • Execution: Use the Hold-To-Buy button to execute your pilot trade instantly.

Step 4: Scaling Winners​

Now, you wait. The market must "earn" your next allocation.

  • Scenario A: The Trade Works

    • The stock price goes up. Your Conviction Score remains high.
    • Action: Add another $1,000. You are "averaging up" on strength. This is how big trends are caught.

  • Scenario B: The Trade Fails

    • The price drops immediately. The Rating flips to CASH or SELL.
    • Action: Do nothing or Cut it. Never add to a losing trade. Because you only started with a Pilot Position, your loss is small.

Step 5: Sizing & Efficiency​

Your goal is to build a Meaningful Position.

Check your Portfolio Efficiency score in the "My Portfolio" section.

  • Too Small: A $50 position in a $100,000 portfolio is noise. It doesn't move the needle.
  • The Sweet Spot: Aim for positions that are 5-10% of your total account value. This gives you enough exposure to profit from a move, but not enough to ruin you if it reverses.

Summary Checklist​

  1. Find it: Is it in the Top 20 on the Leaderboard?
  2. Check it: Does it have a strong Diamond Score?
  3. Enter it: Buy a Pilot Position (20% of target size).
  4. Scale it: Add more only if it stays green and strong.
  5. Hold it: Let the Composite Score tell you when the trend is over.