Fidelity SPDR Advertisement
Home > Boards > Free Zone > A.I.M. > The "Stock Trading Riches" Investment System

I received an email from a "Stock Trading

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (2) | Next 10 | Previous | Next
PraveenP Member Profile
 
Followed By 4
Posts 160
Boards Moderated 1
Alias Born 01/10/03
160x600 placeholder
Putin Circumspect on Re-Election, but Critical of Western Sanctions
Russian President Vladimir Putin said he would not retain his post forever, but doesn't rule out running in 2018, and said the Western sanctions against Moscow violate human rights and are aimed at sowing discord in Russian society.
China Mobile's Need for Speed -- Barron's Asia
Intel Projects More Growth in 2015 -- Update
Zoetis Unveils $500 Million Stock Buyback Plan -- Update
Technip Bids for CGG -- 2nd Update
Appeals Court Grants TV Programmers Stay in FCC Dispute -- Update
Wireless Carriers Bid Up US Airwaves To Record
Two Top-Producing Advisers Leave Merrill Lynch--Street Moves
Chinese Premier Plays Down Qualcomm's Woes
Activision Blizzard to Get $275 Million in Settlement
PraveenP   Tuesday, 12/13/11 01:25:35 AM
Re: None
Post # of 248 
I received an email from a "Stock Trading Riches" reader who had a question about the spreadsheet (it is a free download for people who buy the book, in either format - paperback or kindle).

His spreadsheet question was:

In the "number of shares" column I notice that you are checking for a 10% price change between the current years price and the previous years price. This is ok in Year 1 and Year 2 but in the longer term you are not comparing the current years price to the initial Year 1 price. So what could happen is you could have a steady increase/decrease of less than 10% every year over a number of years (cumulatively > than 10% over a number of years) but none of them will trigger any selling/buying as the price is being compared to the prior year. Was the sheet deliberately designed this way?

My answer was:

What the basic system does in real life is only rebalance if the stock has moved 10% or more from the last time it was rebalanced. So, the spreadsheet should actually not compare the current and previous values, or the current and first. Instead, it should compare the current value with the last value where a rebalance occurred.

I don't know how to do that in Excel. So, I put the 10% check between the current and previous row just in case a value isn't 10% apart. But the best way to use the spreadsheet is to manually exclude prices less than 10%.

So, if the monthly prices were 100, 99, 95, 97, 85,... you would put in 100, 85 in the spreadsheet.

Praveen Puri
Author of "Stock Trading Riches"
The Stock Trading Riches System discussion board: http://investorshub.advfn.com/boards/board.aspx?board_id=19287
Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (2) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist