News Focus
News Focus
Followers 17
Posts 2816
Boards Moderated 2
Alias Born 01/05/2004

Re: investor5001 post# 29499

Monday, 03/09/2009 8:19:32 AM

Monday, March 09, 2009 8:19:32 AM

Post# of 48346
I am using the 50% cash reserve method. Your instructions say in a declining market to look for an additional 5% decline before making a buy. Just to make sure, I take it the SAFE figure would be 10% of the new lower value. Is this correct?

Yes SAFE is 10% of the 'current' stock value under classic AIM.

Delaying purchases until after a further 5% (or whatever) decline has occurred doesn't have a great effect. All that happens is that you're next buy trade will be larger than had you bought earlier. Along the lines of perhaps two lots of $1000 buys occurring after each 2.5% price decline, or a single $2000 buy after a 5% decline.

An alternative to slowing 'cash-burn' might be to compare your cash reserve with that indicated by vWave and if you cash is less than that then simply defer the purchase (perhaps just ignoring AIM for that months review).

Best. Clive.

Trade Smarter with Thousands

Leverage decades of market experience shared openly.

Join Now