Tag Archives: patterns

The Scaled-Down Pyramid

The patterns used to compound positions can be represented geometrically as pyramids. The standard pyramid, or uprigbt pyramid, has a larger base than its top. The largest portion of profits are developed early and an adverse price move is not … Continue reading

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Diversification

Diversification means spreading risk; it is the well-established way of lowering systematic risk, and every investor is well advised to diversify’. For the purposes of risk reduction, it is necessary to distinguish between systematic risk, which can be reduced by … Continue reading

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