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 Q&A, General question on stock market

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mouming88
post Sep 11 2010, 02:54 PM

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QUOTE(ekhoono @ Sep 7 2010, 11:59 PM)
Can any sifu recommend technic of average down of ABP?
Eg firstly buy 1 or 2 unit /lot, then come price drop, after how many % drop  and buy again. How many lot need to buy to cover first time lost? If further drop what's the strategic /ideal .Mind to share biggrin.gif
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One of the technique I've came across is 1-2-3-4. Its useful for counters that had been whacked down severely for unjustified reasons, such as like notion and jcy...

It basically means

- start off with 10% of your capital
- top up another 20% if the price drops 10-15%
- hantam further with another 30% if the drop persist by another 10-15%
- finish it off with 40% of your allocated capital for this counter drop another 10-15%
- wait for the egg to hatch

Your investment into this counter should be quite safe as you've placed high weighting on the price which had dropped 50%...
If it starts to fly say after 1st 1-2 step, so be it... there's always other counter which you can trade... don't cry over spill milk

Mind you, apply this only on fundamentally sound counters. If you apply this on sick diseased counters like gpacket, kenmark, then prepare to R.I.P. You in for a very very looooooooong term investment...


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