When we trade, we often face an important question after holding positions, which is what to add positions and how to add them. The pyramid rule of adding positions, although simple, is efficient and can prevent us from falling into the trap of increasing losses as we add positions. It allows us to steadily increase our returns while ensuring the safety of our funds.

The pyramid rule for adding positions is that the most important point is to consider adding positions only when a position is profitable. This principle may seem simple, but it can help us avoid taking risks to the fullest extent possible when the market and our orders are moving in opposite directions. We need to wait until the market develops in a favorable direction for us and our position has a profit before adding the first position. This way, while avoiding risks, we can also seize the market in a timely manner. Many friends suffer big losses because they haven't made a profit on their first order and the market is still moving in the opposite direction of the order. Rushing to increase their positions can only make their losses bigger and bigger.

The second important principle is that, except for the first opening, the number of subsequent additions should be less than once, preferably not exceeding three times. If the first order has already made a profit after opening, it may be considered to add a position for the first time at the retracement point, and the position added for the first time must be smaller than the position opened for the first time. The method for adding positions later is the same. Remember to add positions at the retracement level, and add positions when all opening orders have been fully profitable. However, it is allowed for the added positions after the first addition to be equal to the previous ones, but not exceeding. In the process of adding positions, it is generally not advisable to pursue higher positions, as this approach carries greater risks.

The pyramid method of adding positions may seem simple, but it allows us to avoid huge risks and not blindly add positions. Even if we make a profit, we do not chase after high positions and add positions. Instead, we add positions at key points after a pullback, which can put our overall position in a cost advantage position. No matter how good the trading method is, without strict execution, it will be worthless. If we want to make profits in the market, we must strictly integrate knowledge with action. Only in this way can we continuously improve, discover shortcomings, leverage the advantages of our methods, and avoid our own personality weaknesses.