If everyone did Pyramid investing, it wouldn’t work. Somebody’s out there on the other side of every transaction you make. When you sell, for example, maybe the buyer is someone buying based on their view of market fundamentals. There is nothing immoral about this whatsoever. It’s an honest trade of money for stock. My point is Pyramid investors are helped by investors trading with other strategies, and vice versa. Pyramid investors shouldn’t want everyone in the world to use their strategy.

I have a section in my book that specifically addresses the issue of “What if everyone applied the Pyramid Investing”. I will post that section as an article at a later date, but now I can at least share the main points since you commented that “it wouldn’t work”.

Pyramid Investing actions are based on price moves. No price moves equals no action. Pyramid investors do not cause prices to move. They act after the price has moved already.

If literally everyone applied the Pyramid Investing, the whole market would be standing still forever because everyone would be waiting price to move. By definition, no two Pyramid investors will be on different sides of the same trade. Therefore nobody would be trading anything. The prices wouldn’t move and this would be one self reinforcing cycle.

However, in reality, it is impossible to have literally everyone applying Pyramid Investing. Practically looking, there will always be enough “suckers” to satisfy the other side. I know I am biased, but I call a sucker anyone who buys strength (price chaser) or sells weakness (bailer) regardless of their technique or analysis. The whole point of this Pyramid Investing blog is to turn as many suckers into successful investors, without pretensions that it will ever manage to turn every single one of them.

Therefore, not only that Pyramid Investing would work in every practical scenario, but there is a significant benefit of Pyramid investors providing support for falling prices and resistance to rising prices. Pyramid investors actually reduce the volatility of markets which works to their own detriment and for the benefit of “suckers”. So in that sense, you are right: “Pyramid investors shouldn’t want everyone in the world to use their strategy”. But I think there is so much room to convert suckers into Pyramid investors before ANY detriment would actually be felt for existing Pyramid investors. I would still chose to help as many suckers as I possibly can (to become successful winners of consistent profits) even though I may lose a cent or two on a trade because they won’t be on the other side of my trades.

The big question will be reliably selecting pyramid parameters for a particular security that result in good profits in a reasonable amount of time. The way I know to extract value from volatility is to buy the stock and write covered calls on it every few months. Pyramid investing offers the possibility of greater profits than covered calls, IF you can select the pyramid parameters right most of the time.

Believe me, right parameters can be selected ALL of the times. The only question is: “Right for what?” If you are to capture big swings in prices, you set different parameters than if you are to make the most of small price moves. It is normally recommended to have multiple pyramids and perform specific Pyramid Investing diversification. You want to be prepared for every possible (and impossible) scenario.

At this early stage of Pyramid Investing blog, I still haven’t covered many aspects of Pyramid Investing. Therefore it is understandable that you feel more comfortable performing your well practiced approaches. I am sure you will find comfort in selecting parameters for various pyramids in due time. For me, parameter selection process is art, math and intuition, all at the same time. The beauty of it is that there is no single solution and yet all solutions are good. Perhaps some of them are a little better.

The big question will be reliably selecting pyramid parameters for a particular security that result in good profits in a reasonable amount of time. The way I know to extract value from volatility is to buy the stock and write covered calls on it every few months. Pyramid investing offers the possibility of greater profits than covered calls, IF you can select the pyramid parameters right most of the time.