How to properly pyramid a position

The video explains how to properly pyramid a stock position and explores some of the common mistakes that are made by aspiring traders.
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[dirkdarwin]

This video is such a winner. It sums up the essentials of position sizing and risk management in one quick punch. Love it!!

[malik]

This video adding so much value for me. Adding onto trades was always something I needed more clarification on. Thank you 🙏🏽

[市澤Hiro]

Thank you for sharing precious technique. this is so valuable to me.

[jameyrichardson]

Great Advice. Thank you for the video.

[macster]

Rookie mistake is really a rookie mistake. We should not be increasing quantity as the trade goes in our favour. But i feel that equal quantity should be added rather than a big chunk at the start. Going wrong is very much a probability at the start, why we would like to add a big chunk at the start, go with small equal quantity, making sure that our next add makes the previous trade riskfree.

[sauravtahim]

Thanks for sharing the precious knowledge 🙏🏻

[mehrdadmithra]

thank you for this content, uppside down pyramid will always be in fron of me when entering a trade. will look what more lesson you got for me :)

[tianxia]

If the stop level is constantly moved in line with price movement, why would it make sense to decrease the position size as you go on? Since the most you could lose would be the stop level and the most recently added position.

[savinderkataria]

Thanks for your efforts. Really great thing

[TherealJesseLivermore]

It’s all situational. I’ve been in position of taking a weekly breakout on FNMA but buying on the daily break and executing on the hourly chart .74 buy with risk on .72 thing shoots up to the weekly breakout level of .9 in the same day on friday on massive volume but pulls into close and forms a base on the 15 min off .85, gaps up to the breakout level monday has small shake back to the close of friday and rips through the breakout level. I could have only risked small add, but I knew this was a breakout on all timeframes, monthly, weekly, daily, on BIG volume. So I added the max i could while keeping cost basis just under the low of the day with my risk level at the low. Made 50% of my account in one day. Also in that exact same position on FNMA rn as i just bought it on march 8th at 1.31 and 1.34, plan is to add big over 1.5.

[ramoncastellanos]

Thanks for the video. The visual aid and dollar bill are a good touch. I am curious about how you suggest scaling out, and/or do you suggest closing the position in full. Of course, there are market conditions and situations which will force the full closure, but if you "can" scale out, what is your process?

I attempting to building my scaling skills in general, so this is helpful stuff sir!

[PrecisionTradingSys]

The risk with the first example of the upside down pyramid can be equal to the first risk if one uses mathematics and raises the stop on each add. This is overlooked in the video. My testing demonstrates that the 4th add can be omitted as it rarely helps unless a truly monster trend is in progress.

[ArashSalem]

Totally disagree with everything you said. For example for your last part, raising stop-loss while adding to position will eventually cause a stop-loss hit, and you will lose the trade. It is not possible to survive and not getting hit, while moving the stop-loss for several times higher.

[ai-xymx]

best way to use this is only in trending market, add position on pullback and the money management key is to open a new trading account with the amount youre willing to risk for example 1% of your main account in order to protect you main account in case something goes wrong.
hope this help 😘