Larry Williams won quite a few trading contests risking 10%+. He https://www.trade2win.com/threads/larry-williams-money-management-technique.228440/ recommends this as a way to quickly grow an account with a winning system. It's outlined in one of his books, but the win rate has to be really high for that to work.
To size up fast, you need to bet big and be right... likely several/many times. We hear about a few who do in fact make it big... but there are scores more who tried and failed that we never hear about.
"Now and then you're gonna catch these stocks that double and triple in a short amount of time. Those are the ones that are gonna make you rich. Everything else is just a grind. You gotta find those homeruns. Most of the time trading is just a grind. 70, 80% of the time." -Kristjan Kullamägi And in those few lines more value has just been added to ET than in all the posts of MW and longandshort combined. Qullamaggie || Good Breakout................... - YouTube
Actually, this only supports the arguments of M.W. & longandshort. Nailing a double or triple movement and sticking to it as if you knew they're gonna happen is nothing but luck. But i guess we can call it a winners intuition. Fortune favours the bold, right?
Thanks Laissez Faire for posting that link to the Swedish newspaper article. So Kris was the 15th highest money earner in Sweden for 2021 and taxed 35 million? Wow. I dont know what Sweden's income tax rate is but Kris' income would have had to been in the neighborhood of 70 million for that year. Not too shabby for a guy who traded alone with his cat in a spare room of his mom's house.
I think $35M was his income, not his tax bill. I would also assume that's pre-tax. Capital gains in Sweden is taxed at around 30 % I believe.
Yes, all positions are closed at the same stop-loss level if price moves against you. I emphasise all, because many traders assume pyramiding is a one-off event on a winning trade. In fact you can add as many additional positions as your margin allows. A new position is added each time the preceding trade gains profit equal to the first trade's capital risk. Granted, there is a significant loss of unrealised profits when all the positions are stopped out at once, but this is not capital loss, the capital loss never increases. I don't see that this characteristic invalidates the tactic. It's a little tricky to manage and is worth trialling on a demo account.