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Re: Toofuzzy post# 38432

Tuesday, 10/21/2014 7:31:00 PM

Tuesday, October 21, 2014 7:31:00 PM

Post# of 47103
Hi Toof, If you leave everything else the same and add to SAFE you are essentially increasing the size of the Hold Zone.

Increasing the minimum order size while leaving everything else the same will also increase the size of the hold zone.

The difference between the two is that in the first you will be selling only the minimum amount you desire to sell. Then the next sell order price will move up by whatever that minimum order size is as a percentage of the remaining holding.

In the second, you'll sell a larger amount when the trade comes and since the minimum order size is a larger portion of the remaining shares, the "next sell" price will move further from the most recent sell price.

The larger the minimum order size relative to the remaining shares, the larger the price change to the next sequential sale will be. This is true of sequential buys as well.

Since we don't know what direction the market may take next, we need to pick a LIFO profit level and design the SAFE and Minimum order size to accomplish that profit level. After that, it's up to the markets to determine whether we buy or sell next.

Overall, if one stages all the SAFE on the buy side with none on the sell side, it tends to favor "distribution" of shares. If the SAFE is staged more heavily to the Sell side, then AIM tends to favor "accumulation" over many cycles.

Best regards,

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