hmp said:
can anybody explain pyramid strategy in trading? i also like to know how to double once proffit while exiting from one position and starting anoher position. its very usefull strategy in the game of trading which most of expert traders using.
I came to know of the pyramid trading strategy when I subscribed to the futures trading newsletter from tradingpicks.com They recommend this strategy.
I use this strategy to trade the nifty futures and the results are fantastic.
Pyramid Trading as the process of using profit generated from an existing position to acquire additional positions.
This results in a "doubling" of your position during each pyramid iteration. By using a sensible approach to "manage" risk, it is possible to rapidly achieve exponential gains.
The signals are generated by the newsletter, so I just have to follow the signals and add positions only in the "direction of the profitable trend". The profits from my first trade partly pays for the second and so on... I like this strategy because it provides a more comfortable trading situation and gives me confidence of trading.
have any further questions then let me know.