To a pyramid builder, there is no difference between realized profit and unrealized profit because they are both still "in-play". At the same time, they would watch out for the end of the trend using catalysts and fundamentals, and then take whatever profit available.
To PYRAMID into STRENGTH
- Thread starter K-Pia
- Start date
yes, there are still a lot of unfinished pyramids in Egypt
that's why I like the skyscraper method. One unit a time, for good or ill. Just make sure you are working with a skyline, not just one building.
I couldn't agree more. There are many variations to the pyramids, you can build whatever you want that fit the fundamental and your conviction level. The more buildings the better. Just got to watch out for correlation.
why not put on options?
In a moving (trending) environment pyramiding will work
In every other environment - it fails miserably
Anyone here able to foretell the coming environment
That aside
====================
Pyramiding assumes more risk for a given position by moving the stop farther away
Not something a trader should be doing
Yet.., tis always a choice
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aside
Amazes me how folks get caught up in what "they think" they can make...., yet ignore what they could lose
Pyramid yer ass into oblivion - you certainly won't be the first..., nor the last
RN
In every other environment - it fails miserably
Anyone here able to foretell the coming environment
That aside
====================
Pyramiding assumes more risk for a given position by moving the stop farther away
Not something a trader should be doing
Yet.., tis always a choice
===========
aside
Amazes me how folks get caught up in what "they think" they can make...., yet ignore what they could lose
Pyramid yer ass into oblivion - you certainly won't be the first..., nor the last
RN
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IMO it increases the risk of ending break even.
I am only thinking about adding to winners.
Therefore the average price moves up.
Then the SL shrink as we leverage.
To keep risk constant.
Sure, without strength, momentum, it gets catastrophic.
However it depends how we manage the position.
But I'd like to keep risk constant.
Even if it diminishes P(G)...
If G|P(G)>L|P(L) in the long run and we keep L benign,
It's fine.
There is the theoretical..., then there is the reality
You have been cautioned
Now..., go forth and knock yourself the hell out
RN
a pyramid builder is working on a much longer time frame than a day trader. If the day trader is working on one minute, the pyramid builder is working on 5. etc on and on. All the way up to days or weeks or months or years. Nobody knows if it will ever trend again. A pryramid builder is positioned really well if it does, and really bad if it doesn't. Since most time the market only chops and doesn't trend until it has shaken out all the pryamid builders it would seem short term betting is the best option.
Everything I have to show for myself is the result of just luckily being on the right side of a big trend with a fairly large position (or at least adding to it at what at the time seemed to be stupid entries and turned out to be ok.)
Some try to make money on the chop. Makes sense, since most of the time all the market ever does is chop. And ususally just enough to stop you out.