Position Management: Practical Application of the Pyramid Averaging Method

Pyramid averaging is a commonly used position management strategy among professional investors. Its core principle is "add to your position at the right time, reduce when wrong."
Specific operations:
Initially build a 30% position, add 20% after a 5% price increase, then add 10% after another 5% rise, allowing profits to run.

Advantages of this method: 1) Lower average cost 2) Amplify gains from correct judgments 3) Control overall risk.
Key points: Only add to your position after confirming the trend, avoiding frequent operations in a choppy market. Each layer of addition decreases, ensuring that even if the trend reverses, overall losses are manageable.

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