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Re: Heartland99 post# 578

Friday, 09/28/2012 2:51:37 PM

Friday, September 28, 2012 2:51:37 PM

Post# of 621
That is a really good idea. Each incremental decline is a larger percentage decline than the previous purchased decline. In your example the first purchase was based upon a 17% decline, the second purchase would have been on a 20% decline, and the third purchase would have been on a 26% decline, etc.

This is something I had never thought about. Gives me something to serious consider.

Guess the first question that comes to mind is when do you sell after making a couple of consecutive purchases?

One thing comes to mind is that if you sold the shares bought on a decline when they recovered to the previous purchase price you would have a good LIFO profit. The shares bought at $4.15 would be sold when they reached $5.00 for a 20% profit; the shares bought at $3.30 would be sold when they reached $4.15 for a profit of 26% profit, etc.

Is that the way one would do their Sells? Or, do you have another method?

Thanks for sharing this idea with me.

Regards,

Ray

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