Pyramiding Strategy For Minimum Risk
Online financial trading tips site IndependentInvestor.co.uk has recommended spread bettors think about pyramiding up, the process of investing in increments of increasing weight behind already profitable positions.
Online, July 10, 2012 (Newswire.com) - Online financial spread betting strategy site IndependentInvestor.co.uk has spoken in support of the virtues of pyramiding strategies for making the most from spread betting positions (learn about financial spread betting), recommending traders 'bid up' successful positions in increasingly substantial capital investments in order to leverage profitable opportunities to the fullest when they appear.
Pyramiding is a strategy which involves trading light positions in markets until they establish a clear profit potential, before loading up capital behind those that show the most potential to continue to run. This is designed to reduce the risks involved in trading the open markets, and to allow traders to make the most of often scarce profitable market opportunities.
Pyramiding can also improve trading efficiency and the effectiveness of capital deployment, bringing shrewd traders the possibility of enhanced returns where the strategy is carried out to maximum effect, according to IndependentInvestor.co.uk.
A spokesperson for IndependentInvestor.co.uk said that by reducing the risk to capital and ramping up the potential gains from successful positions, pyramiding was a crucial tactic all traders should implement for more substantial returns from the trading and research labours.
"Pyramiding can be used to reduce the risks of spread betting on a particular transaction. By graduating in behind successful positions, traders can more effectively test the waters and establish which positions work and which are less successful. Similarly, for traders looking to make the most of profitable opportunities when they arise, pyramiding up position sizes in already proven winners creates the potential for significant low-risk profits to be made thanks to the degrees of leverage on offer through financial spread betting."
"At IndependentInvestor.co.uk, we detail pyramiding and other strategies like it in our financial spread betting resources archive, designed to help traders better understand how to profit from the markets. We recommend using pyramiding to establish which positions are winners at low capital risk, before backing those that show promise and closing those that underperform, in order to maximise the returns on available.
About:
IndependentInvestor.co.uk is an online financial spread betting resource site, providing free to access materials, strategy guides and trading blueprints designed to make spread betting more successful. Designed to cater for traders of all stages of experience and success, IndependentInvestor.co.uk focuses on providing traders with the best advice and guidance on how to make a profit trading a range of different financial markets and instruments.
For traders looking to start out, or for those in search of a better deal on their trading, IndependentInvestor.co.uk is also a broker comparison site, allowing traders to contrast different providers to identify the best option for their trading requirements.
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