Wednesday, 1 December 2010

My first pyramid!

OK well today I managed my first ever 'pyramid' into a position in ITV. This is the first time I've achieved this so lets hope it doesnt collapse within its first few days. That was in account 2 btw, something Tony advocates in his position trading book. I've pyramided into the trade as it is now in guaranteed profit even if the pyramided position gets stopped out. Not a huge profit as its a low value share but still, I'm pretty excited about it!  As well as locking in some profit I did unfortunately suffer a quick loss with 'Resolution' for £12.50.

The FTSE doesnt know what to do with itself at the moment, no point trying to second guess it. I got some stop-outs in account 1: UK coal stopped @35.6 for a loss of £3. I guess the trailing stop was caught short there. I opened up 2 new positions aswell, one in Aberdeen Asset Management @179.95 and one in Serica Energy @50.13.
I will be opening a couple more positions in Account 1 tomorrow so keep an eye out for those.

Happy Trading!

4 comments:

  1. Hi

    well done on first pyramid - for me this is definitely the way to make money. It's a bit like the search for the holy grail: finding that one share which is in a long term uptrend, be it a month, 6 months or, preferably, 12 months or more. Once you find that one share just keep on pyramiding - in a controlled way of course.

    At the moment I have 10 shares in varying degrees of 'pyramiding' (if you like). Basically I only pyramid into a situation where the worst case scenario is break even or better should the share completely collapse - as, in fact, you are doing with ITV.

    My 'biggest' pyramid share at the moment is TT ELECTRONICS PLC (x 6 contracts); my 'best' pyramid so far is PETRONEFT RESOURCES PLC (3 x contracts) and is currently showing £140-150 profit...

    Anyway all the best for now, Alan

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  2. Hear, hear Alan.

    I'm even trying to spread the word to the "Foolish" community ;-)

    http://tradingtrail.blogspot.com/2010/12/what-foolish-thing-ive-done.html

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  3. Yes guys its definately the way to go - you only need a couple of decent pyramids to make up for the small stop-losses along the way.
    Just out of interest Alan which is your main spread betting platform?

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  4. Hi

    my one and only platform is IG INDEX but I am thinking about opening a new account, maybe CMC or Tradefair?

    Alan

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