Dealing with volatile market positions 👇
Many novice market speculators believe that the larger the position size, the greater the profit
In fact, the opposite is true
Smaller position sizes can handle market fluctuations more effectively, which is likely to result in greater profits, while larger positions can cause heavy stock fluctuations
This is especially true when traders want to keep increasing their purchases as profits grow. Through the pyramid method, the average entry price becomes easier to be removed from the transaction.
In fact, the opposite is true
Smaller position sizes can handle market fluctuations more effectively, which is likely to result in greater profits, while larger positions can cause heavy stock fluctuations
This is especially true when traders want to keep increasing their purchases as profits grow. Through the pyramid method, the average entry price becomes easier to be removed from the transaction.
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151083369 : This is especially true when traders want to increase their purchasing volume as profits grow. Through the pyramid method, the average entry price becomes easier to be removed from the transaction. How do you interpret this sentence? Does this mean that after the stock price rises, the average price will rise if the stock price rises, and then it is easy to be broken after the stock price falls?
sTone83OP 151083369: Aggressive position increases can easily be kicked out in volatile markets;
My understanding is that apart from the beginning of a major trend, the rest of the period is not suitable for aggressive position increases.
151083369 sTone83OP: Does the pyramid method mean that the scale of additional positions will gradually decrease later?
sTone83OP 151083369: Yes
Cherry Cat : Benefit greatly! thanks
