WHAT IS A STARTER POSITION ?
Sometimes when the chart looking good to take a position or there is an impending news or information , but we don’t have 100% conviction in the trade. We start with a SMALL position for longer dated contracts.. a “Starter” position..
Over next few days as the chart develops, it would be a good time to revisit the trade and we might “Scale-In” or go bigger OR if the thesis for the trade is broken then we don’t do anything. Just let the chart unfold..
This is a way to test the waters than jumping both feet in. If trade thesis does not work out, we lose small so that it does not hurt.