Being notorious for not pulling the trigger on my stop, because I could've sworn it was coming back, I had to create a system to fool my self into looking at the problem from a different perspective. The purpose of the table I created was to show me how much money I could save by exiting in the following manner:
Sample Table of "Averaging out" .
Commissions of $15 per transaction are included.
1-Bought 200 shares. Average out 100 shares at each level.
DISCOUNT FULL COST SAVINGS
STOP=1/2, (Two 1/4 levels) $120 $130 $10
STOP=3/4, (Two 3/8 levels) $157 $180 $23
STOP=1, (Two 1/2 levels) $195 $230 $35
2-Bought 300 shares, Average out at two levels, 200, then 100 shares.
DISCOUNT FULL COST SAVINGS
STOP= 1/4,(Two 1/8 levels) $95 $105 $10
STOP=3/8,(Two 3/16 levels) $120 $142 $22
STOP=1/2,)Two 1/4 levels) $145 $180 $35
STOP=3/4,(Two 3/8 levels) $195 $255 $60
STOP=1, (Two 1/2 levels) $245 $330 $85
Imagine, I could set a one point stop and it will only cost me $245!
I created my table averaging out up to 1000 shares and using various multiple levels.
Imagine, my mind actually looks at this as a "good deal" and I find I'm willing and happy to accept the cost.
I works for me,
Dominick |
