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Re: None

Tuesday, 11/12/2002 3:33:57 AM

Tuesday, November 12, 2002 3:33:57 AM

Post# of 48379
Deep diver thoughts.

Due to the recent posts here, and Tom's graph, a for-testing idea occurred to me:

When you have a deep diver and run out of cash, and still AIM wants you to buy. Then in stead of buying sell half the shares and reset the PC (or divide it by 2?) and restart AIMing.
While I would not suggest this (now) as a way to handle deep-divers, I am curious as to what would happen with the account after that.
Assume that the stock would go back up to it's old high, what would then happen in case 1, where we did not do anything and in case 2 where we sold half of the shares?
Would case 2 get up higher than 1? would they intersect somewhere?
Of course, this depends on how the volatility of the stock would develop. But we could simulate this by going back in time, and using the stock's price history as the future price development.

Anybody has any time to see what would come out of this?
Any other suggestions?

Best,
Rien.

Best,
Rien.

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