Better than Averaging! Pyramiding Strategy for Long Term Investing | marketfeed
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- Опубликовано: 9 июн 2024
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In this video, we will discuss what is better than averaging out your holdings. Introducing to you the concept of pyramiding
Welcome to a marketfeed video, by Ajay Ajith.
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I feel It's getting harder to satisfy Wall Street. The market has gotten so unpredictable post covid.
No disrespect but you are wrong... Believe it or not, the market isn't as bad as some people have made it look... Companies are making record profits... In all honesty, as a beginner investor who knows next to nothing, I have made over $15k net profit in a few months... I was retrenched recently, and I am using these resources to keep body and soul together that I want.
Hi Mr.Anthony, your profit margin is quite impressive for a beginner. can you share your spreadsheet or trading journal? thanks if you reply.
I have never drawn up a spreadsheet, it's of no relevance to me... I simply follow Kelly Marie Matwick's investing guidance.... You can look her up she's a registered advisor.
Averaging is not bad in good fundamental stocks but keeping stops loss is bad. His explanation of averaging is from a trader point of view and not for not for investors
Bang on, was about to comment and see you have already. Value investing is finding cos trading lower than their fair worth and in this process the price may be trending down before the upturn
Hmm thought so too
I did averaging in hdfc today will come back later to this comment and say if it went well
@@VasanthSummerI did averaging in next50 and sensex investment. I hope BJP will wins and stock price will bounce back. Let see what happens
Boss super reply and your are right. He is not setting any context before explaining any concept
Averaging is not a mistake
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Tenley Megan Amerson . She is well known; you ought to look at her work.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
Your logic and examples hold true only if you use this technique in fundamentally weak stocks.. Using the averaging technique in fundamentally strong stocks helps in getting better ROI..
Right, ye log confuse ho ke gyan batne aa jate hain.. 😀
He is talking about penny stocks
He just proves what a. Nonsense discussion the South Indians do in the IT companies No work Just Bakwas! 😂❤
Ab tumko yaha South/North dikh gaya. Kattue ho kya 😀
Well said👏
I am at the beginning of my "investment journey", planning to put 185K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Adding JEPI and JEPQ are smart additions in my opinion. As for staying committed to long-term investments, it's all about balancing your risk tolerance with your long-term goals.
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
The market's instability makes DIY risky. You don't need to find the next NVDA to succeed in investing. Opt for top-notch ETFs, dividend aristocrats, and a trusted advisor. I've turned $100k into $20k in annual dividends, a major milestone.
I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
*Jennifer Leigh Hickman* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
My experience was we can average the stocks one which was strong, undervalued & debt free companies...like this of stocks if it is fall defenetly within no time it will reverse.
After listening to this guy i bought a stock and it went 30% up i used pyramid then it went 60% down which lead me to have more loss 😢 than previous investment.
And a stock which i have not used pyramid and avg it at low prices it gave super returns. Though it made me feel cry for some months😅.
things are just opposite for me..the moment i stopped averaging stocks and instead add to winning stocks i started earning money from my investments much faster..simple reason is how big the company is ...a falling stock recovers much late than a winning stock moving upwards..
21 years old lecturing about markets 👏🏽
ETF investments are best.... for average, compared to stocks.
Completely agree as ETF should go up over time.
I think the Pyramid strategy is also averaging. Some people will call it as upward averaging
Thank u for saving my time. These tubers make me lose my time by making a complex 30 min video to express a simple idea 💡 which u expressed in a simple sentence above. Thank u.
People just do not average out for only 10 points low . They average out when minimum 10 to 20 % down .
Averaging down & averaging up both are necessary but in the most convincing stocks !
I just hit $100,000 net worth this last quarter from saving and i plan to invest in the stock market to see it grow in the next 3 years. What is the best way to navigate the stock market as a newbie?
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
Consider allocating 30-40% to a High-Yield Savings Account (HYSA) and enlisting the help of an advisor to diversify into positions with the rest of your capital. My advisor has significantly impacted my financial journey, fostering clarity and confidence in the stock market. Thanks to her guidance, I've grown my portfolio from $100k to $1.4m in just 5 years.
Wonderful!!! I've recently sold property and aim to invest in stocks, seeking guidance. How can I reach out to her?
She goes by ‘AMBER KAY WRIGHT’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
I'm impressed with your advisor's prompt response and expertise. Her clarity and professionalism instilled confidence from the start. Excited to explore opportunities together! Thank you.
"Pyramiding" can also be done when the particular stock and market in general is going down. You can allocate smaller and smaller amounts and keep adding on the way up as well. JIO FIN was a perfect example of this. Trying to build a long term position, I started to buy at an all time high and then averaged both going down and on the way up. Worked well for this particular stock and point in time
Evn i plnd pyramiding 4 jio and avg for tata motars and itc.
I usually recommend people to give an entry to stock with 20 percent of money and not entire money. This will help to make profit on an average
Did math on ‘buy the dip’ oppose to buy the stock at increased price @8:19
5*90 = 450
15*80 = 1200
30*70 =2100
Total shares I own = 100+5+15+30=150
Total investment 3750 +10000 =13,750
My average is 91.6!!😃
If stock increases to 250 per share today then 150*250=37,500
Your average per share is 125😌 in future if stock reaches down to 125 you are under loss but I’m in gains
Averaging (with no stoploss) & pyramiding (with stoploss) are done in stocks/indices which are going down or up respectively. In averaging you buy increasing number of stocks in order to average down your buying price, WITHOUT a stoploss.This might work well in fundamentally strong stocks going down due to a weak external environment or due to a temporary problem in the company. This might also work if you select a sectoral index/ETF which is going down due to factors mentioned above.
Pyramiding might work well in stocks/indices which are in an upward momentum. Here you buy decreasing number of stocks on the way up, in order to take full advantage of the momentum in the stock WITH a stoploss to protect your capital.This should work well both for fundamentally weak and strong stocks which are in an upward momentum.
So choose an appropriate stock in a suitable market trend to gain more profits.
Exactly fundamentally strong stocks me buy on dip karna chahiye .
In a volatile market you will hit stop loss again and again and after falling stock will again rise and again fall, pyramid strategy will be a disaster in volatile market. However not falling in love with stock is a great advice!
Past 1 year, i am using pramid strategy.. for me its working perfectly...
Thanks dear for such a valuable information. Because of averaging I was loosing a lot , now I know how to recover the loss.
ईश्वर आपको ऐसे ही स्वास्थ्य और दीर्घायु बनाए रखे
Thanx for making this video..All of your points were so relevant and close to my way of investment..
❤❤
Agree with you on individual stocks, but averaging is good in mutual funds.
Very valuable advice. Average only in top 200 companies . But stoploss 3-5% depending on price of stock is good . In a volatile market 2% change is common . A bad news on sector brings 2% fall .
You are right......
Thanx for the video ajay 🙏
In mutual funds, we can do avg right?it's safe there
Yes you can do it mutual funds
Very informative, Thanks Ajay
Then the concept of Every dip is an opportunity is failed?
Puzzled by your theory, which may be applicable for intraday not for long term investment
Construction of pyramid also starts of earth work from bottom and not on atop , my reference to solid companies, no one can catch the exact top or bottom price of a share in the market...
Wonderful Information.. !Never thought this way
Pyramiding is a good concept, but averaging fundamentally strong stocks going low is not a mistake.
Overall nice video. Keep it up .
Dollar cost averaging is good always ❤❤❤
My strategy is always start with 20% investment then average down and pyramid up it will make a best average price.
@Ajay Ajith: For swing traders, Is there any better way of handling crash like corona crash? If stocks open gap down much below our stop loss what should we ideally do? Can you make a video on this?
Hi friend, while pyramiding , what if the price of a stock falls below the first bought price ?. So, after studying the history of the stock movement, it's better to average the stock price as it falls & someday it starts recovering & can make profits.
Perfect idea. Thanks
Thank you for sharing. Please take a real world example like Nestle stock and show how it works. Otherwise it is just theory, which has no use case.
Hi
Which camera you are using for shoot?
Very good advice indeed. Thank you.
Thank you❤ I HV done this in rvnl
In my experience averaging over 6 to 1 year period on fundamentally strong stocks worked out beautifully and got me around 20 to 25% returns in 6 to 8 months period.
Just try holding for 5 years you will be mesmerized with the results
We can use an inverted pyramid for a downward average for good fundamental stocks ...
Goog strategy and I thank you so much.
It's very good strategy which I am thinking after 8 years of experience in the market.
I was holding polycab since IPO from 596 it reached 5000. Then there was a correction and it came to 3600 it was a golden opportunity to buy more but I also fell in this trap of not buying the falling knife today it's 7000 damn stupid mistake. Unless there is anything fundamentally wrong with the stock always average.... if your original investment thesis still plays unless you buy stocks for short term because real wealth creation is in long term
I have countless examples of averaging working and not averaging a blunder....
Had tejas network at 330 it fell to 30 did not average its 700+(sold at breakeven😢)
Got windlas in ipo at 460 it fell to 200 did not average now trading at 632(Still holding)
Century ply bought at 240 came to 120 didn't average last time i saw was around 700 ( sold at breakeven)
Now the craziest one had 100 shares in yes bank at 370 got stuck bought 3000 more in FPO at 12 rs was able to sell my position at 15k profit. However i don't recommended doing such things in fundamentally weak stocks
Having said all that its worth buying fundamentally strong cos at higher levels
If the enter sector is falling you can average the market leader in that sector, example now chemical and footwear.
It’s mindset of a trader not an investor
Stoploss and pyramiding is for Traders. Investors average (accumulate) always.
You are partially correct. You should put stop loss for the profit you have gained.. exiting is not a good choice if the stock is really good
Averaging is good for etfs and mutual funds
Piramding is good for individual stocks
I have been doing pyramiding without knowing the term just by common sense and getting good profits😊
Fundamentaly good stocks can be bought at every support level.
When can we expect the continuation for Stock market A-Z course?
A good video i must say but i will always prefer stocks. AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
Having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
One of my goals is to employ the service of one this year. I've seen some off Facebook but wasn't able to get a response. Could you recommend who it is you work with?
Marisa breton Dollard is Well vast and established in that field. You may look up the name and possibly shoot her a mail
@@HilaryPhan I find this informative, curiously explored Vivian on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
Example taken for averaging is not correct
This is what I do now cause it ties money up for long periods of time
Very nice informative and helpful video 📹
Useful. Thankyou 🙏
Also, if it is a fundamentally good stock, I don't like the idea of 'pyramiding'. If you have done your due diligence and find the stock good, you should buy the stock in every dip. Not sure why need to stagger the purchase
DCA on good stocks or in bull market is not a bad idea... You need to know when to get out as well.
In pyramiding you grew the stock by 50% and by 100%. And as mentioned by you, you only do it for nifty 200. The companies in Nifty 200 generally take more than 3 years to grow by 100%.
Nobody can predict for sure on when to averaging and when to pyramiding. In my opinion, averaging can be good when the stock falls in tandem with the market momentarily in two or three days. If the stock is in downtrend continuously, better wait for trend reversal with two weekly green candles before averaging. Pyramiding with stoploss for capital protection may always be good in stock uptrend.
Malyali and maths are like chai and samosa . Cannot be separated
Sir Nagraj Strategy 2024 Mein Sahi hai? Matlab koi Yes Bank ya Vodafone jaise stocks Mein agar Nagraj ban ke baitha hoga instead of profit booking, Poora Loss Hota...
Waqt Badal gaya, Haalath Badal Gaye Hain, isn't 3 to 4 yr profit booking and Rotation is better idea? 😢
Dis applies more for swing trading...In investing u don't need to pump your money in intervals...If identified a fundamentally strong stock den jst hold and follow quarter results...
Mate, you are also seen footing on assumptions. Friend, assumptions based on fundamental are the driving force.
When we study the fundamentals and buy a share,we are going to monitor the company always. So if the share price is falling not due to the business going wrong, averaging will bring in multibagger returns. Hard earned money has to be invested only after careful study of the company business,not based on price fluctuations. Stop loss doesn't exist there
** Video is for short term traders
If you are long term investor, averaging out in fundamentally strong stocks is always fabulous
RPS mode reverse pyramidal system is a very good technic for etf .and good and fundamental strong stocks
so what to do when the market is falling?
Do average after 40-50% down price for one time in fundamental good stock. It definitely work in long term. Your concept with in 1yr concept
He is telling truth.I am the example all my money stuck in the averaging the infosis but it is keep on going down but now I don't have the much money to invest in other stocks I already sold 50% of stocks with huge loss
You gotta hold that goddamn share brother
It is a fundamental strong stock.. you will not loose if you are averaging and waiting it..
You will regret your decision in 2-3 years and it was your mistake to buy it when it was overvalued.... ironically what this guy is telling to do buy overvalued stocks
That will work in some cases guys
Sir is pyramiding is also applicable in etfs
Do SIP in ETFs. It's better.
few brokers show the option of Unrealise profit .. very simple if it is red then your in loss side
Upward averaging can wreck holdings if a bearish move occurs... Same for downward averaging.
The only thing to consider for averaging is to do it only when you do not see any other better stocks in the market.
Ajit but if 1 stock should be only 2 percent of portfolio, then I have to track 50 stocks, who has time to do thi?
Best to average index in falling markets..
Nice presentation
Bhaiii...itna hi dar lagta he to share market me aana hi nahi chahiye...if you dont averages out in fundamentally good company then you will not be able to make money...if you add money at higher and higher level you end up loosing money😂😂😂 kese kese log aa jaate he youtube pe
Bhai tu bahut emotional hai... he is saying correct only... if you buy at the right price you should only average up even if it is good fundamental company
Always average up. Only follow price. That's what the world's best traders do. You have no clue about trading.... quick to identify a noob.... kaise kaise log comment karte hai you tube par
Sahi kahaa..ye sab logon ka gumraah kar rahe hai
@@RollsRoyce2035 bhaiii...with my experience i can say that share market is game of patience and luck in good stock..
Bhai yeh madrasi managers aisehi dimag khate hai IT comoany mein! 😂❤
Good information. However, this "pyramiding" is nothing but upward-averaging!
Averaging for good stock is good idea
What if the stock you bought starts falling, you just get out of it at your predefined stop loss and book loss!!
It all depends on which shares you invest.
It's better to invest in ETF indices, averaging works there, as of now.
Don’t understand the logic. Isn’t averaging a ‘Low-ward pyramiding’?
Sir can you please share your analysis of Hindustan zinc share considering last one month growth.
Scientifically correct
So what will you do if stock starts correcting after you bought for 100 and then 150? You would book huge loss or wait indefinitely till stock climbs back to 175 so that you can buy again....please explain
The main key is selecting fundamentally strong stock after that whether you invest with average method or pyramid method it hardly matters
@@life_zero_km yes thats the point
I do not understand why we should have stop loss in long term investment for a fundamentally strong company...For trading yes SL needed but not for investment
averaging is definately good for a good stock
averaging need not necessarily be for the same quantity
if you book the loss then only your realized loss is 3000, here we will wait till it reach 120 or 150. even it takes years also no problem. we will look the company worth of it then only we will put our money into it otherwise we won't buy 1st 100 stocks as well
Wt you do the if the stock comes to 100
No need to worry on good quality stocks with zero debt and good share holding keeping long term will help
This logic is only applicable only for weaker or penny stocks. Consider company Like TCS who have grown every quarter with profit after profit on its operations not through assets … so it is good to buy 2-3 stocks every month for longterm and buy 10 if it falls too much due to some war going or entire market affected
Bro please finish the A - z stock market series , put the A - Z series for F & O
Brilliant 👏👏👏
he is right.. trust him
Good Teaching
Thank you
This pyramiding looks like it is trailing stoploss strategy when price is rising and exiting when falls especially in mid cap or small cap .