pyramiding

Layered accumulation strategy

Pyramiding is the practice of building up in layers, like a pyramid.

In finance, it means using profits from an initial position to buy more of the same investment, amplifying gains—or losses: He pyramided his stock holdings as prices rose.

In business, pyramiding can describe building corporate structures where one company controls another, which controls another.

The term also applies to illegal pyramid schemes, where returns to early investors come from new recruits rather than legitimate profits.

investing

leverage

Borrowed capital for amplified returns

futures · options · derivatives · speculation · momentum · day-trading · risk · portfolio · overleveraging · exposure

fraud

Ponzi

Swindler's surname, now generic

  • schemeCalculated strategy, often secretive
  • scamDishonest money-making scheme
  • swindleDeception for financial gain

con · deception · hoax · sham · flimflam · grift · chicanery · SEC · recruitment · collapse

accumulation

stacking

Placing items vertically

aggregating · escalating · multiplying · concentrating · accruing · mounting · snowballing · amplifying · intensifying · incremental

geology

stratification

Division into distinct levels

bedding · strata · accumulation · sedimentary · formation · horizons · unconformity · superposition

weightlifting

sets

Grouped items together

drop-sets · warm-up · progressive · barbell · dumbbell · hypertrophy · volume · intensity · failure · overload

Categories
Opposites
concentration vs. distribution of risk/capital

pyramidingdiversifying

Increasing variety within

diversification · asset allocation · hedging

position building direction

pyramidingprofit-taking

Selling to realize gains

trimming · unwinding · liquidating · de-escalating · averaging down

leverage and risk amplification

pyramidingdeleveraging

Lowering financial leverage ratios

risk reduction · capital preservation · retrenchment

Family

pyramid, pyramids, pyramided, pyramidal

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Rated G