Category: Money tips Release Date: 2006-04-11
More and more desperate traders realized the danger of the principle of gradual divide our forces have become a consensus. However, to truly implement the progressive forces were divided on how their investments are still a problem. The progressive (PYRAMID) tactics, it is the concrete application of the principle of progressive forces were divided.
The so-called progressive and tactics, is this: Suppose you have A point of buying, just be you grasp the bottom, then up to the day Quotes point, do you think rally late start, and no reason to rush to arbitrage, but also in the B points into the second Support soldiers buy follow up the victory. Quotes rose to C point, that is a big Shenglang but the mid-point, plus yards soldiers to build on this third branch, near the top wave only "withdraw troops Ming Jin, Hui Zhao return after victory." Therefore, the progressive tactical advantage of the opportunity can also be called overweight.
Correct application of progressive tactics is necessary to pay attention to three points:
First, the money only overweight because of money when their investments are Junichi and line, yielded. After buying buy or sell prices soar in the wind after the fall has not only re-sell, it will give the results have expanded, resulting in victory. If you lose money when their investments are gone against the tide and the line deeper into the quagmire in the wrong, so experienced traders of a specific to raise the vicious, but "only increases health code, not dead code."
Secondly, no one in the same price near overweight. For example, you are 2090 yuan / ton when you have done a short amount of soybean contracts, it should be dropped to 2050 yuan Quotes and other re-air the second installment to below 2,000 yuan mark for the third air do pen. If the 2090 yuan / ton when the first sold in the market when the cowhide, 2080 yuan Shiyou short second pen, 2065 yuan you to an empty third pen; price yuan in 2080, so would it not be changed into a desperate it? 2,100 yuan a rebound on how to do?
Third, do not overweight the inverted pyramid style. When you are ready to do a progressive tactics when the allocation of funds is very important, a second soldier to be than the first few soldiers, soldiers are once again the third branch should be higher than a second few soldiers. This three soldiers, the average price of more favorable. On the contrary, each coded more than the original, making long, then it will pull the average price was getting higher and higher; to do short, then held down the average price will be getting lower and lower, and the prices slightly again, putting the original owners The floating profits swallowed up at any time to lose money by the money into. This is an extremely unwise move.
Progressive forces were divided is the right principle. A correct principle must be accompanied by the right strategy in order to achieve good results. Implement the above three issues, the progressive tactics before the power play.
