whether PC could be changed using something other than Lichello's original 'add 1/2 of purchase $' approach
Mr L went through hell to get to that choice. Runaway loops and all sorts until he recalled a 2X 1-50 licence plate.
"We start off with a nest egg of $10,000. We put $5000 in stock and keep $5000 in reserve. The Portfolio Control now reads $5000 ...... suppose our stocks fall to a value of $3000, which represents a difference of $2000 from our Portfolio Control of $5000. We would then take $2000 from our cash reserve and buy stock with it. We now have $5000 worth of stock again. Now according to our Portfolio Control, we are even: $5000 invested in stock, and shareholdings now worth $5000. But we know this is not true. We actually have $7000---not $5000---invested, and we have a loss of $2000. Attention must be paid to this loss. If not, and if the value of our stocks moves up to $6000, we will find ourselves obeying Portfolio Control and selling off stocks at a loss...
...suppose we adjust our Portfolio Control whenever we buy more stock. Our $5000 stockholdings decline to $3000. We take $2000 out of our cash reserve and buy stock with it. Now our stockholdings are worth $5000 again. At the same time, we add to our Portfolio Control the amount of our last investment ---$2000.... We have just invested $2000 at the behest of our AIM, and now we find that while our stockholdings are worth $5000 again, our Portfolio Control window is flashing a figure of $7000. There's still a difference of $2000 between Portfolio Control and the actual value of our stockholdings, despite the fact that we've just invested $2000. And if we go ahead and invest another $2000........
..... Those magic numerals, 1-50....maybe they are telling us to adjust our Portfolio Control figure whenever we buy more stock....telling us to adjust it by 50 percent of the amount of our new investment.....True there is still a $1000 difference, but it's only half as great a gap....Gears are meshing, switches are being thrown and brakes are being energized in order to stop you spending money like a drunken sailor.."
