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Question about pyramiding.......
By:KC
Date: Saturday, 4 December 2004, 11:28 am

Do you guys pyramid as soon as you get enough profit to buy another contract? I've read that some trend traders do this. Their reason is that they're more worried about the price continuing to go up and they may not be able to buy at that price again, rather than waiting for a correction to pyramid. In hindsight, if I'd done this on gold's run-up, I would have made a lot more profit. With the recent price action of gold, the price has been moving up but following the resistance line, without corrections down to support. I've been leary of pyramiding this close to gold's resistance line in fear of a correction, but it hasn't happened. It's a tough call for me to make. It seems that in the eartly stages of a trend there are some corrections, but after the trend really gets going, it just doesn't look back till the reversal. I guess you just have to keep in mind what stage of the trend your in (early, mid, late). Any thoughts on pyramid strategies will be appreciated. Thanks in advance.

Messages In This Thread

Question about pyramiding.......
KC -- Saturday, 4 December 2004, 11:28 am
Re: Question about pyramiding.......
Andrea -- Saturday, 4 December 2004, 9:48 pm
Re: Question about pyramiding.......
Rebecca -- Saturday, 4 December 2004, 9:54 pm
Re: Question about pyramiding.......
Andrea -- Saturday, 4 December 2004, 10:10 pm
Re: Question about pyramiding.......
Dino Dave -- Sunday, 5 December 2004, 10:05 am
Re: Question about pyramiding.......
Rebecca -- Sunday, 5 December 2004, 10:15 am
Re: Question about pyramiding.......
techie -- Sunday, 5 December 2004, 10:26 am
Re: Question about pyramiding.......
Lar -- Sunday, 5 December 2004, 1:22 pm
Re: Question about pyramiding.......
Erich (vendor, CTA) -- Sunday, 5 December 2004, 2:23 pm
Re: Question about pyramiding.......
Rebecca -- Sunday, 5 December 2004, 5:02 pm
Re: Question about pyramiding.......
Trip -- Sunday, 5 December 2004, 8:30 pm
Re: Question about pyramiding.......
Rebecca -- Saturday, 4 December 2004, 9:49 pm
Re: Question about pyramiding.......
Erich (vendor, CTA) -- Sunday, 5 December 2004, 2:44 pm
Re: Question about pyramiding.......
Brian Trout -- Sunday, 5 December 2004, 11:49 pm
Re: Question about pyramiding.......
Doc -- Monday, 6 December 2004, 10:52 am