Say I think a stock will go from 100$ to 50$ within 2-3 months. Also, I believe that if it retreats it is unlikely to bounce. What I mean is, if it goes from 100$ to 70$ I think it is very unlikely that it will go back up to 100$. This is because I believe that people will eventually see that the stock should really trade at 50$ or lower, because the company doesn't have any substance and is only temporarily hyped (or even promoted). Now I could simply put on a standard position, say 5% of my capital. However, I want to use eventual profits to increase the position, although my initial risk should be no greater than 5%. I want to pyramid 4-5 times to get up to 20-25% for example. I could calibrate this by using volatility. I recently did a trade where I bought a stock at 6$ and doubled up after it went to 8$. I sold out at 12$, but in hindsight I should have be more aggressive when things were going the right way. Any thoughts?