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
U.s. Gdp Expands At 3.5% Rate
U.S. GDP advanced at a seasonally adjusted annual rate of 3.5% in 3Q, a sign of sustained growth fueled by government spending and a narrower trade deficit despite mounting concerns about the health of overseas economies.
More Top Equities Stories Of The Day
European Markets Show Signs of Stress--2nd Update
ADR Shares End Mixed; Sanofi, Banco Bilbao Vizcaya Argentaria Shares Fall
Shire Files 8K - Other Events
Apple CEO Says He's 'Proud to Be Gay'
Stoxx 600 Flirts With Three-week High
U.S. Stocks, Bonds Dip on Fed Outlook
FTSE 100 Ends Higher After Roller-coaster Day
European Stocks Climb For Third Straight Day
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