Here are my notes on how these key concepts fit together:
The minimum position is established initially, for example a £1-per-point spread bet. Positions are only added to when this is possible at no additional risk because some profit is locked-in by the stop order.
Subject to Position Sizing above, positions are 'added to' as they trend upwards. Thus: the longer the trend, the bigger the position size, and the higher the profits.
Ideally this approach practised in a leveraged account using Spread Bets or Contracts for Difference (CFDs) so that many positions can be established with small stakes. Leveraged accounts also tend to allow you more funds for trading by freeing up margin as your stop orders are ratcheted up.
Stop Orders are of course the key to all of this. They are used to minimize risk only newly-opened positions and to lock in profits on profitable positions. They also serve to free up risk capital.
You can buy my new book on Stop Orders from Amazon.com, Amazon.co.uk, or the Global Investor Bookshop.