Therefore, one needs to apply prudent portfolio management and build the golden foundation first. Only then, one can work on building “castles” on top of that foundation while using more volatile instruments that also happen to have significantly higher chance of going off the board.

Well said!
Thanks for your comments. . .we travel the same journey.

Conrad

… [method] systematically receives criticism from the Investment Community: the reason quoted is that it’s weakness is the danger of losing the entire investment with deep divers that do not return…

I do not pay much attention to criticism that is not constructive. Thanks God we are all different. Otherwise, there would be no market or price fluctuations. In a sense, we do need others who think differently and are willing to trade with us (I call them suckers).

I do believe that some of our critics are hypocrites. They do agree with us and they do Pyramid Investing for their own accounts. However, they never admit it publicly since they are afraid of losing the other side of their trade or they think they will make more profits if they keep their trading technique secret while bashing the very technique they apply.

I always said: there are more than enough suckers to make plenty of profits for us – pyramid investors. I don’t believe me or anybody else will ever convert the critical mass of suckers into pyramid investors for our investing profits to dry up. Thus, I am and I always was open to share Pyramid Investing secrets with whoever wanted to listen.

The reason our critics quote to dispute our method has no merit for prudent pyramid investors. Our foundation of investing is Gold. Chances are extremely low Gold will go off the board anytime soon. With security of Gold and its associated volatility, we make handsome profits on a consistent basis by applying Pyramid Investing. The risks are negligible.

On the other hand, Pyramid Investing is so profitable that it trades average cost of position (or pyramid) to zero in a relatively short time. After that, we are dealing with Market’s Money. Then the risk goes to zero as well and we couldn’t care less if underlying stock goes off the board.

Therefore, one needs to apply prudent portfolio management and build the golden foundation first. Only then, one can work on building “castles” on top of that foundation while using more volatile instruments that also happen to have significantly higher chance of going off the board.

… I hope you will get the message across better than I could and get many people to understand it!

I may or may not succeed in “getting the message across”. I am not burdened by that as I am a winner either way. I do my personal investing very successfully according to principles that I expose on this blog. I am willing to share what I do and others are free to adopt whatever they deem credible and/or profitable. I have no illusion that every single one of my readers is going to follow my steps. However, those who do will be grateful to say the least. Those who don’t may very well find themselves on the other side of my trades. And remember: I never trade to lose!

I have to admit that I have small financial reward from this blog. Few bucks are generated from time to time when readers click on ads in the sidebar or footer of pages they read. That is enough to pay for domain registration and blog hosting. Besides that, I have no other expenses except my effort and time I invest in this blog which I do on a voluntary basis anyway.

The funny thing is that this method of buying low/selling high is very obviously the backbone of making profits but it still systematically receives criticism from the Investment Community: the reason quoted is that it’s weakness is the danger of losing the entire investment with deep divers that do not return. . . the Enron Syndrome (all eggs in a bad basket).

We know this type of investing works well if proper precautions are taken to guard against losses.

Regards.

The book is not done yet – not sure how many pages. I strive for quality of content, not number of pages. Chapters are quite short and easy to digest. The book is supposed to help ordinary folks to achieve lifetime of consistent profitability. They mostly have no clue where to start and how to go about investing in a professional way. Not to mention all the deceptions that media is constantly pumping to all of us.

Pyramid Investing book is not going to be another cliché investing book. It is not going to be “all you need to know to make consistent profits”, since, really, one doesn’t need to know much. It will better be described as “all you need to DO to make consistent profits”, since hard work on one’s portfolio is what counts.

There is no need to congratulate me since it wasn’t me who created or invented this method. Pyramid Investing is just one possible implementation of “Buy Weakness, Sell Strength” concept. Bankers are the ones who have been applying this concept in one way or the other for decades (even centuries) with tremendous multi-generational success. There are infinite number of ways to play this simple concept. The problem is, very few do it and most do the exact opposite. But that is a long story…

My idea is to help lift the curtains of investing darkness and make this concept understandable, accessible and applicable for the ordinary amateur investor. Life is already too hard and investing should not be making it even more difficult.

Anyway, from what I read here Pyramid Investing is a contrarian method and from the chart you have drawn on the top of this page it looks very much. . not to say identical. . . to my Vortex TurboVest Method (A leveraged AIM variant).

I am not sure if I should congratulate you already for having created this method that looks like my TurboVest, OR if I should congratulate myself for having invented TurboVest many years ago that looks very much the same as the Pyramid method.

I am very curious as to the details of your Pyramid method. I will read up on the chronological development that you have presented.

Regards/Conrad