Pyramiding - Leverage Trading Strategy
What is Pyramiding?
Pyramiding is an old trading strategy where a speculator adds to their position size by using margin from unrealized gains.
Pyramiding: A Risky Strategy
Pyramiding is adding to positions as price moves in the desired trend direction.
Pyramiding
What It Is:
Pyramiding refers to purchasing additional units of a security with unrealized profits on open trades.
Pyramiding
Using unrealized profits on an existing security or commodity position as collateral to increase the size of the position.
Pyramiding
The use of profits on existing positions as margin to increase the size of the position, normally in successively smaller increments.
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Pyramiding
So called because it is akin to building a pyramid. It involves pledging shares with a banker or broker to raise a loan to buy more shares of the same company, pushing up their prices.
Pyramiding
The use of cash generated by positive variation margins on a futures position to increase the size of the position, each reinvestment in successively smaller increments.
Pyramiding: Using profits on a previously established position as margin for adding to that position.
Resistance: A price level at which rising prices have stopped rising and either moved sideways or reversed direction.
Pyramiding: Adding to your position in a particular security, often using open profits from an earlier purchase(s). Eg, "I bought Coca-Cola at 30 & bought more at 40."
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Pyramiding
A scheme that can take many forms, some of them legal. One example is using unrealized profits from a securities position as collateral to obtain new positions on margin.
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A B C D E F G H I J K L M N O P Q R S T U V W XYZ ...
Pyramiding
A type of stock swap option exercise in which a small number of previously-owned shares is surrendered to the company to pay a portion of the exercise price, for which a slightly larger number of option shares may be purchased, ...
Pyramiding winning trades or "averaging down" losing trades is a no-no.
Pyramiding
Adding to a position as the market moves up or down. ...
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PYRAMIDING - The practice of using accrued paper profits to margin additional trades.
RALLY - Quick advance in prices following a decline.
Pyramiding
The use of unrealized profits on existing futures positions as margin to increase the size of the position, normally in successively smaller increments.
Pyramiding a winning trade is risky; pyramiding a losing one is suicide.
Keep it simple.
Even worse than holding to a losing position is adding to a losing trade (by averaging down which is the opposite of pyramiding).
Over-Extension (in banking)
Pyramiding (in banking)
Consumer Credit (in banking)
Jefferson Bancshares Inc
Merchants Bancorp
San Joaquin Bancorp
TCF Financial Corp
Mountain States Mortgage Centers, Inc.
Ponzi scheme: A fraudulent scheme. It is a specific form of pyramiding in which money paid by later investors or contributors is used to pay inflated returns to earlier investors-until the funds dry up because no more contributors can be found.
This type of system is not martingale because it doesn't require you continue to fight with a losing trade. It's not pyramiding because you're not adding to trades when you're winning. It's more of the opposite.
I don't normally believe in pyramiding positions but in this case we are trading a very reliable pattern that is designed to identify a major reversal in direction, so I think that adding to positions early is a very good strategy.
One aspect of this trading method that made Darvas so successful is the pyramiding of position by buying more stock on the breakout of subsequent boxes - a very powerful technique to maximize returns in a winning trade.
Willie's dream of fabulous profits from this trade were just that, a dream. Willie should be thankful that his broker did not allow him to get in trouble. Pyramiding with unearned paper profits is not the way to succeed as a futures trader.
Predator, Preference Shares, Preferential Allotment, Premium, Premium Issue, Premium Raid, Price Gap, Primary Market, Private Placement, , Prudence Concept, PTI Sto cks can, Public Limited Company, Public Offering, Punter,Put Bonds, Pyramiding, ...
The seller or writer of the option is obligated to buy the stock at the strike price in the event that the option is assigned. Pyramiding The practice of using accrued paper profits to margin additional trades.
The idea that a portfolio should be built on a solid base of low-risk investments with a smaller amount of high-risk investments. pyramid scheme An illegal investment scheme, where investors are promised impossibly high returns... pyramiding ...
 See also: Pyramid, Market, Profit, Position, Trading
  
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