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!
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