I've read in a few places, including "Reminiscences of a Stock Operator", about the power of pyramiding into your positions. I would like some input on what the proper way to do this. From what I understand, the idea is to limit your initial risk, while at the same time maximising your potential gains, should you turn out correct. However, when does one determine he is correct about his position? By the way, I am referring to swing trading, not day trading. From what I've read, it's a good idea to purchase the bulk of your position initially and only add on the smaller amounts as your trade turns into the green. Are any of you regularly pyramiding into your positions? Let's say I wanted to establish a long position of 600 shares in XYZ stock. I would be willing to initially risk $1 with the goal of gaining $8. What would be the proper way to pyramid this position?