LC, thanks for the cogent explaination of using portfolio control to rescue a diver. I know that this would work. The only problem with this method is that it accepts the loss on the whole portfolio.
What I have noticed is that my last buy is typically at a low enough price to benefit from a rebound, but the high priced shares are the ones that are weighting the whole portfolio down. So, I was trying to come up with a way that would still do well as far as LIFO is concerned, but by selling off the high priced shares (at a loss), I would still raise a bit of cash to get back into the game. I would continue the tactic until enough of the higher prices shares had been sold off to get portfolio back on track.
So far, this has been a mental exercise (hence, very unreliable). I think I will keep an eye out for the right opportunity to give this a try. With the recent bounce, this may be a good time to try it out. I let everybody know if I get into it.
TAB