Pyramid trading

Discussion in 'Forex - Currencies Forums' started by BudFox, Feb 1, 2015.

  1. BudFox

    BudFox Well-Known Member

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    Anybody ever tried this with any success? I like the idea on the surface - ie trading with the markets money - but is it something you can only really be sure of in long-term positions with large stop loss potential? Seems day traders would get stopped out too often unless they were prepared to risk their banks.
     
  2. owesem75

    owesem75 Well-Known Member

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    I am not sure of what this Pyramid Trading is all about.. but I know about pyramiding in the MLM sector and for me, Pyramid Scheme is BAD. It maybe good for those who started it but when the market is totally saturated and no new members are joining the stream.. it will really really create a bad problem for those who just joined.
     
  3. Gelsemium

    Gelsemium Senior Investor

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    Me neither, but every time I hear about pyramid is something I don't like because I associate that word with scams, I've seen that over and over again.
     
  4. JoshPosh

    JoshPosh Guest

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  5. crimsonghost747

    crimsonghost747 Senior Investor

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    Thanks for the link, explains it really well.
    But somehow this doesn't seem to be my kind of thing. If I'm relatively certain of the direction, then I'm going to go in with a bigger amount from the start. With this pyramid tactic you are just buying more and more as the price goes higher... increasing your average shareprice constantly.

    I do like the idea of raising the stoploss during a trade in order to guarantee a lower loss or even breakeven. I might give this one a try some day.
     
  6. JoshPosh

    JoshPosh Guest

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    I use to spend hours on end in front of the computer with multiple screens trying to figure out where the hell is the market going? But I like what I'm doing now. Long term trading, and just ride it out until there is a reversal. Easier and not stressful at all.
     
  7. crimsonghost747

    crimsonghost747 Senior Investor

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    Not a bad idea either. I'm mainly in this investment thing for a strong, stable buy & hold portfolio which will provide me with income through dividends and coupon payments from bonds. So that is pretty much 100% stress free and I'm not forced to spend any time reading up on stuff. or watching the charts if I don't feel like it.

    However I do some quick day trades when I'm bored (yeah, that is the main reason :D) so it's an interesting idea to keep pushing the stop-loss higher in order to secure a certain profit.
     
  8. petesede

    petesede Guest

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    I do the same thing. I have a small part of my money that is just for screwing around, basically roulette wheel investing. It never turns out well, but I learn a lot about obscure companies. I once drove 4 states just to eat in a certain chain restaurant.. Rainforest Cafe.. did not turn out well, I think I lost like 20% in 6 months, but I learned a lot about SSS ( same store sales) and how the work in the average restaurant.
     
  9. crimsonghost747

    crimsonghost747 Senior Investor

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    Yeah I consider investing to be as hobby just as much as I consider it to be an income source. A lot of the times I have nothing to do during the evening (evening my time, which is when NYSE is open) and I have a couple of companies that I love to day trade with. Keeps things interesting and gives me something potentially profitable to do... if I end up losing then it's just money spent on entertainment.
     
  10. pwarbi

    pwarbi Senior Investor

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    I have to agree with others on here and say that anything with the word pyramid at the front of it, I'd be tempted to stay well clear of if I'm honest.

    It might be nothing like that, but for me it still conjures up the image of the shady marketing deals that I'm sure we're all well aware of.
     

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