- Analyst AZA
The secrets of using pyramiding
Is there a way that allows us to trade on the market, using small amounts of capital, but at the same time have real substantial growth in the deposit? It's about a trading strategy like pyramiding. Most of the players just do not understand how to use pyramiding better, so it's afraid of it. But we will reveal the secrets and share practical approaches. The first and most basic, it is necessary to understand that not every market transaction will be suitable for pyramiding. But, if the correctly selected technique is successfully used in the market situation, you can get a good income for a relatively short period. One effective trading transaction using the pyramid tactic, with a yield of 10 to 1, can give you a chance to raise your deposit from 30 to 40%. That is why it is necessary to deal with the subtleties of this method. So, let's consider in more detail the concept of this strategy. The main goal of pyramiding is to play with the exchange: you use the market with profit when the price moves in your direction. To do this, the trader moves the stop-loss order lower or higher to stay in the break-even zone, and then we have to open a new position (to the one that already exists). That is, the level of risk either remains at the same level or decreases to zero, as long as the potential amount of income rises at times. But when using the pyramid tactics, it is worth taking into account the fact that as the potential profit increases, the risks should also be evaluated correctly: if the trader does not understand the properties and concept of the work of this tactic, then the pyramiding becomes unsafe for the capital. In the rest, pyramiding successfully and efficiently works when the market is directed and moves in the same course. In other words, before the trader, there is a direct task: work with the exchange, built on the principle of increasing the potential income with a low level of risk. The basic concept of the strategy is a gradual, relatively smooth build-up of positions: we increase deals as the price moves in favour of the player. Along with how new orders are added, the stop order moves (higher or lower, it depends on the transaction itself), so we fix already the income that exists at the current time. When a trader increases his positions, his potential profit grows exponentially, and the risks remain at the same level. Players who actively use pyramiding are guided by the fact that the market does not rise, and does not make a turn before it goes down or grows in the expected direction, and they will be able to make money at the same time. The main point of the pyramid strategy is that there is a twofold increase in the volume of the transaction, while the risks do not increase. You can use different levels of risk (small and large), but the main thing for a trader is to increase the profit. The pyramid tactics will prove effective and will bring its results when we trade the net movements of the exchange: this is when the trading signal can be created once in a couple of days or even weeks. The main thing is not to rush, but to pick up a profitable moment, or rather a day. It is also very important for a trader that he needs practical experience or knowledge to determine when favourable conditions for trading in pyramiding will develop, and when not. It is also necessary to be prepared for the fact that positions can be closed in automatic mode. This is achieved by triggering a stop order: when you move the stop loss, you will even have a small correction to close all trades. Even if it is rare (one successful transaction every few months), we will have very good profits and raise our-deposit funds. But remember, you need to be able to fight greedily. It is important to determine in advance how many positions you can open, when exactly you can open them and so on. Each transaction is unique, but the concept of pyramiding is the same for everyone. Do not forget about the stop loss every time you add new positions: the order needs to be adjusted, otherwise, you risk increasing losses instead of profit. Also, it is never worthwhile to build up new positions, plus them to a loss-making position. After all, this is the right path to bankruptcy. Success full pyramiding and profitable trading!
Most of the players just do not understand how to use pyramiding better, so it's afraid of it. But we will reveal the secrets and share practical approaches.