Better than Averaging! Pyramiding Strategy for Long Term Investing | marketfeed

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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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[@landings2takesoffbybinishj390]

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

[@ravipro]

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

[@natrajan071091]

Hmm thought so too

[@VasanthSummer]

I did averaging in hdfc today will come back later to this comment and say if it went well

[@Ramkumar-cr8yk]

​@@VasanthSummerI did averaging in next50 and sensex investment. I hope BJP will wins and stock price will bounce back. Let see what happens

[@prospect3417]

Boss super reply and your are right. He is not setting any context before explaining any concept

[@darnellcapriccioso]

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?

[@maiadazz]

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.

[@romiverajr]

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.

[@richardhudson1243]

Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.

[@romiverajr]

Tenley Megan Amerson . She is well known; you ought to look at her work.

[@tatianastarcic]

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

[@reninmathew5776]

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..

[@FireNFights]

Right, ye log confuse ho ke gyan batne aa jate hain.. 😀

[@kumaralok532]

He is talking about penny stocks

[@Travelhandshome]

He just proves what a. Nonsense discussion the South Indians do in the IT companies No work Just Bakwas! 😂❤

[@FireNFights]

Ab tumko yaha South/North dikh gaya. Kattue ho kya 😀

[@purushothamgowda6449]

Well said👏

[@jacobthomas2722]

Averaging is not a mistake

[@sommersalt88]

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?

[@gagnepaingilly]

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.

[@AntagonisticAsian]

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.

[@blaquopaque]

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.

[@Curbalnk]

I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.

[@blaquopaque]

*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.

[@drreghuramtm8955]

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.

[@gjn17]

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

[@indreshkotha5918]

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😅.

[@asifali007]

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..

[@neelesh0123]

I think the Pyramid strategy is also averaging. Some people will call it as upward averaging

[@sabarinadhn4523]

ETF investments are best.... for average, compared to stocks.

[@dipsp2814]

Completely agree as ETF should go up over time.

[@discusstheundiscussed]

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

[@meetsmanni]

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

[@McElvinn]

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?

[@AUstinnesc]

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.

[@sheltonPston]

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.

[@corrySledd]

Wonderful!!! I've recently sold property and aim to invest in stocks, seeking guidance. How can I reach out to her?

[@sheltonPston]

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

[@corrySledd]

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.

[@balanh1269]

"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

[@bharathkumarnbharathkumarn3850]

Evn i plnd pyramiding 4 jio and avg for tata motars and itc.

[@tamil2aero]

Past 1 year, i am using pramid strategy.. for me its working perfectly...

[@vandanaprakash4144]

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 .

[@viva3591]

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...

[@ShivaPrasad-nm7zp]

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.

[@kaustavsaha1117]

Exactly fundamentally strong stocks me buy on dip karna chahiye .

[@gauravthapar43]

You are right...... Thanx for the video ajay 🙏

[@Cloud83]

Pyramiding is a good concept, but averaging fundamentally strong stocks going low is not a mistake. Overall nice video. Keep it up .

[@hari_vinu_4]

@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?

[@hanuma1512]

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.

[@abhyudayshardulsingh5159]

Just try holding for 5 years you will be mesmerized with the results

[@balajimani4004]

Come to topic as early, don't do blablabla.....

[@agytjax]

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

[@ajithkumarpv]

Very informative, Thanks Ajay

[@beginner828]

Wonderful Information.. !Never thought this way

[@kannsaa]

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.

[@AbdullahAqeelTradingContCoLLC]

If the enter sector is falling you can average the market leader in that sector, example now chemical and footwear.

[@evinfernandez3102]

Thank you❤ I HV done this in rvnl

[@pradeepkumarc2829]

It's very good strategy which I am thinking after 8 years of experience in the market.

[@abhyudayshardulsingh5159]

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

[@devjitsaha8149]

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...

[@krishna83566]

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

[@AsifAliRizwaan]

Stoploss and pyramiding is for Traders. Investors average (accumulate) always.

[@bprao965]

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.

[@nagendrareddy428]

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.

[@srivinay3382]

I have been doing pyramiding without knowing the term just by common sense and getting good profits😊

[@jackrulz08]

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

[@whiteroommenace]

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.

[@PugalRK]

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

[@SriRam-mx3ou]

You gotta hold that goddamn share brother

[@PrabhuKumarkunghattehall-kn5fh]

It is a fundamental strong stock.. you will not loose if you are averaging and waiting it..

[@abhyudayshardulsingh5159]

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

[@keerthidelwatta2785]

Goog strategy and I thank you so much.

[@suthan2003]

When a stock falls but still the fundamentals are good, you will not fear but you will add more.....look at Yes bank. Even before the huge plummet their numbers started becoming bad......that is when you get out......if you have conviction in your analysis you will not get scared

[@jithendranambiar7699]

averaging is definately good for a good stock

[@jithendranambiar7699]

averaging need not necessarily be for the same quantity

[@vinodhkumar9003]

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

[@tamalbanerjee4081]

Not clear,,what to do in case of falling stock values? What he said is buying smaller quantity in case of rising stocks,,, that's good, I used to do it,,but in case of fundamentally strong stocks, loss averaging is a good technique for the long run. In case of losing stocks, I try to get it out or hold it for the next happenings,,,of course for good stocks.

[@mvsukumarannambiar6330]

Scientifically correct

[@sashisatya]

Brilliant 👏👏👏

[@ganapathisubramaniangurumu9923]

Nice presentation

[@thomasflynn8712]

This is what I do now cause it ties money up for long periods of time

[@mohamedrafi7869]

few brokers show the option of Unrealise profit .. very simple if it is red then your in loss side

[@InvestorKiddd]

In mutual funds, we can do avg right?it's safe there

[@PugalRK]

Yes you can do it mutual funds

[@wastedreams8291]

he is right.. trust him

[@mohammadzeyaullah1977]

RPS mode reverse pyramidal system is a very good technic for etf .and good and fundamental strong stocks

[@gauravsewani2886]

Hi Which camera you are using for shoot?

[@pingpong9005]

Best to average index in falling markets..

[@sunilmakhija5819]

It's better to invest in ETF indices, averaging works there, as of now.

[@JitendraSahu-zn4kz]

Mind-blowing

[@spectrefzier4626]

When can we expect the continuation for Stock market A-Z course?

[@natarajana2647]

Fundamentaly good stocks can be bought at every support level.

[@puneetjain145]

If companies fundamentals are good then stock will most likely go up. So its not a hope. It’s just that we should read company fundamentals before investing in a company. I don’t think so that averaging is bad as long as company fundamentals remain solid.

[@abhijitdhamne7619]

Very nice informative and helpful video 📹

[@storytellersandeep4498]

Thank you

[@mrsam1999]

I bought TCS seeing net reviews that the Rs.4000 stock will be Rs.14000 in 2030..now its down to Rs.3800 !!

[@dazkhan5717]

I would never be able to time the market, I kept DCAing way up or way down providing strong fundamentals No debt Good cash flow Increasing revenue Good asset vs liability Good quarterly growth Effective management No competition Just invest and Forget!

[@rajani369]

Good Teaching

[@MotivateYourSpirit]

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%.

[@basamnath2883]

Great video

[@vishnuvardhand8545]

That will work in some cases guys

[@balajivaradarajulu7863]

Averaging for good stock is good idea

[@shanmugavelayudamarumugam8431]

Excellent

[@Partha359]

Dont invest on price invest on business if business is doing well your price will mirroring or reflect on price vise versa research before investment and ask your self that whether your company can survive for next 10 years when your confidence will build on particular business your mind will not fluctuate and you will see that your invest will fetch fruit I will study a company if I find it suitable for me I will keep on buying for 2 years and give another 1 year means to see atleast 3 years you should give to any business remember you may go wrong dont biase accept you mistake and sell if it not giving you desire result after your cutoff time always try to find future business for huge return read Quarterly results management speach and balance sheet remember success in market is always right fight with you self if you passionate that your success rate will increase vise versa many more lesson I dont believe on stoploss which is trader word I believe on entry and exit.

[@sabinnp1516]

Averaging good for etf and good stocks ( large cap

[@vandanaprakash4144]

This pyramiding looks like it is trailing stoploss strategy when price is rising and exiting when falls especially in mid cap or small cap .

[@saroragu]

It’s mindset of a trader not an investor

[@nitins0106]

Sir can you please share your analysis of Hindustan zinc share considering last one month growth.

[@devendrapandeypharma]

thanks

[@988nishanth]

Pyramiding only talks about increasing profit when you are already in profit (may be investor). Most of the case we go for averaging to get out of the stock early when stock falls to a quick dip. Doing averaging on a fundamentally strong stock gives its benefits as well.

[@sidduYTchnl]

so what to do when the market is falling?

[@traditionalsweetsofindia8333]

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

[@RollsRoyce2035]

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

[@rohan852]

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

[@nevillesequeira9911]

Sahi kahaa..ye sab logon ka gumraah kar rahe hai

[@traditionalsweetsofindia8333]

@@RollsRoyce2035 bhaiii...with my experience i can say that share market is game of patience and luck in good stock..

[@Travelhandshome]

Bhai yeh madrasi managers aisehi dimag khate hai IT comoany mein! 😂❤

[@bharathwajvenkat8476]

No need to worry on good quality stocks with zero debt and good share holding keeping long term will help

[@NareshKumar-hb2eh]

Example taken for averaging is not correct

[@VENKAT2070]

Nice content bro

[@kulalumpin1503]

Sir is pyramiding is also applicable in etfs

[@myworldmylife9536]

Do SIP in ETFs. It's better.

[@SanghPath]

There is no hard n fast rule which is evergreen, in this bull market this might look working, but logically this doesn't make sense and it's not what experienced investors do. Majority of us didn't see a full cycle of the market.

[@premrajv5645]

Bro please finish the A - z stock market series , put the A - Z series for F & O

[@getvimlesh]

** Video is for short term traders If you are long term investor, averaging out in fundamentally strong stocks is always fabulous

[@asifali007]

Warrent buffet says..a falling stock is like a falling knife..never try to catch it..how big the company might be..and he never average any stock in his portfolio

[@user-yp6in8nl9z]

warren buffet does averaging and it's done well for him. not sure where or how this nobody came up with his unsound recommendation.

[@sachinsanake547]

This is practically not possible. We are in market where we really do not know the trend, averaging helps in long run. I do see its beneficial one. The point is not everytime averaging may help, because n number of external & internal reasons. Whatever you do at a point you will few stocks which will be in negative even after you do many averaging rounds. I ve seen these stocks become one day rocket which you never ever thought and this is market. I believe that enter when the market crashes and go with small lot.

[@dailyhacks4634]

Malyali and maths are like chai and samosa . Cannot be separated

[@natrajan071091]

Wat about PE consideration during pyramiding

[@AsifAliRizwaan]

This is just for Stock Traders. Averaging is better for Long Term for Mutual Funds and ETFs. People for long term say 5 year plus would invest in Mutual Fund and not in a stock. So, newbie teaching investing.

[@mohamedismailbari1364]

Good information. However, this "pyramiding" is nothing but upward-averaging!

[@binujovin1810]

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

[@life_zero_km]

The main key is selecting fundamentally strong stock after that whether you invest with average method or pyramid method it hardly matters

[@binujovin1810]

@@life_zero_km yes thats the point

[@Indiantr102]

does not applies for fundamentally strong stocks where you need to keep buying in every 10 to 20% temporary dip

[@fasalurahaman3291]

Bro pls show when the share coming downwards.

[@archanabhatkamat3719]

Yes in weak stocks it happens

[@radium7587]

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?

[@munishgoyal6079]

stop loss only makes you wander from one stock to another..without gaining anything

[@mandarapu66]

Please explain with Tcs share