Scale Trading is a disciplined, mechanical approach to buying low and selling high. It is based on the economic law of Supply and Demand, built on the premise that a physical commodity has an intrinsic value and, therefore, will not likely become valueless.
However, Braden Glett warns that while "scale trading can be a viable strategy when applied to commodity futures, mostly because commodities have inherent value meaning that they cannot decline to zero value. ... [but] individual stocks can and do become worthless on occasion, which is one of the main reasons why scale trading is such an unfit approach for stock investing."
[link from scalenet, 4/24/06]
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Note: Scale trading is an averaging down strategy, which is what Bill Miller does relentlessly.