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Re: jibes post# 682

Tuesday, 04/17/2012 9:44:20 PM

Tuesday, April 17, 2012 9:44:20 PM

Post# of 796

For example: Investing $10k one would buy $2k to start and then each subsequent buy would be $1k times the mult and extra decimal portion of the mult. So say it would be a mult of 1.67 then it would be $1670 + $670 = $2340. I would never ever buy above the Ave Price (my cost basis) and buy only monthly and then only if it makes sense to do so.
if the stock rises straightaway I would sell at 20% (.4 times a normal sell of 50%) and start another stock.



Re: Synchrovest.
I have refined this method, now:

I take the principal amount and divide it by 2, then the 2nd half divided by 10 and this then is the additional buys amount.
So: $10k is $5k initial investment and $500 (1/10 $5000) * mult is the basis for each subsequent buy. Buys must be below Cost Basis and should be below previous buy. All sells will be 50% above Cost Basis, even initially.

One more rule I have imposed upon myself is to always buy (the initial amount) below a 600 day simple moving ave regardless. This is a most important rule! It's quite possible to ignore this and do just fine but it's also quite possible to buy too high just to watch as the shares go down below the 600 sma and stay there for a long time. This is an excellent thing (and maybe the single best rule) for AIM users!

See me at "As the DOW turns" at: http://po-ng.blogspot.com/
Please, come hear my music:
http://www.icompositions.com/artists/jibes

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