Say you have established a trend. You want to capitalise on it, but are not very sure whether your assessment is correct. You place your first bet, and the market confirms your initial intuition. What criteria do you use to add more stake to your initial position? The problem of buying after being proven correct is that the dollar value at risk is higher.. prices have moved in your favour and any other additional buying will increase your cost basis. Also, in the case of a reversal, you experience a higher drawdown for the same reason mentioned previously. At the same time, risking your full stake in the beginning also increases the amount you lose if you get stopped out. If the market doesn't react the way you had initially determined, you would lose more than if your initial stake was lower. Conversely - if you are proven right - you would have wished that you had your full size on since the very beginning! How does one balance this issue of money management? Are there any general principles and criteria to look for or follow? How about reverse pyramiding - ie. buying at higher prices but less quantities than your first bet? Looking forward to different insights and advice. Thanks.