Pyramiding 101

1/ What is 𝗽𝘆𝗿𝗮𝗺𝗶𝗱𝗶𝗻𝗴?

Pyramiding is adding to positions as the price moves in your favor.

"The best stock to buy is the one you already own."
-Peter Lynch

2/ There are many ways to enter and exit a stock, some of them are :

🔹All in - Scale out (what I do)
🔹All in - All out
🔹Scale in - Scale out
🔹Scale in - All out

3/ In my opinion swing traders should go with the 'All in - Scale out' approach and positional traders should go with the 'Scale in - Scale out' approach.

4/ Why pyramiding?

🔹Pyramiding will keep your average loss low compared to your average gain.

🔹When the market is hostile and hitting your SLs left and right, pyramiding will keep your drawdown low.