AIM UK

[ls7550]

LADDER

I've added a copy of the UK FT100 Ladder table that I use to the iBox.

Ladder is a simple concept. Pick a top price level at which you are prepared to be 100% fully in cash. Pick a bottom price at which you are prepared to 100% in stock. Partition that range into equal sized steps and divide your total investment amount by one less than the number of steps (Level Cost).

Starting with 100% cash at the top of the Ladder, deduct one Level Cost amount for each step down and you have your Ladder.

Personally to determine appropriate top and bottom price levels to use when starting a new Ladder I simply take the current stock price and double it to identify a TOP price level and quarter it to identify a BOTTOM price level.