Current location - Trademark Inquiry Complete Network - Futures platform - What is pyramid stacking method and what are its characteristics?
What is pyramid stacking method and what are its characteristics?
Pyramid stacking method means that after buying a currency for the first time, the exchange rate of the currency rises and the investment direction is correct. If you want to increase investment, you should follow the principle of "the number of positions added each time is less than last time".

In this way, the number of consecutive purchases will be less and less, just like the "pyramid". Because the higher the price, the greater the possibility of approaching the peak of the rise and the greater the danger.

The performance of pyramid stacking method in stock market;

I chose a stock and decided to buy it. At first, I would only buy 1/2 positions.

If the stock falls, it means that the judgment is wrong and stop loss.

If the stock rises, it means that the judgment is correct. Add positions 1/4.

If the stock is still rising, add 1/8 positions.

If the stock is still rising, add ~ ~

Go on ~ ~

As long as the stock goes up all the way, it will add positions all the way until the trend ends and it will be sold at a profit.