Scaling Positions

Growing Size Without Growing Risk

Reading the book was the last piece of finding and entering a trade. Holding and growing one is a different discipline. Pyramiding is not a way to maximise gains. It is a risk technique that lets you ride an extended move while keeping your worst case roughly constant. The retail instinct, adding to winners aggressively, is what produces the blow-ups. A good pyramid is the cheapest way to grow a position. A bad one is a martingale wearing a suit, and the difference is pure operational discipline.