| FEB 1986
Does pyramiding make sense? by Fred Cehm
Does pyramiding make sense? by Fred Cehm The leverage obtained through pyramiding can be immense. But is it smart? Gehm examines the pyramiding technique and its possible consequences. Recently, well-known traders and trading advisors have argued that pyramiding is one of the most important— if not the most important—money management techniques. Stanley Kroll, for example, attributes much of this success to pyramiding. ""If done correctly,"" he states, ""it is the trader's best tool for big profits in commodities."" Since Kroll apparently used this technique to turn $180,000 into more than $1 million during a three-year period, his advice should be taken seriously. Nevertheless, he is not necessarily correct. Is pyramiding of value? Theoretically, an infinite number of ways to pyramid exist. Fortunately, all are variations on the upright and inverted pyramids.
by Fred S. Gehm
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.