<how you execute your increments?>
I have a set of rules I've evolved over the years, to make money and keep myself out of trouble.
For simplicity, each KLIC increment is the same # of shares. If I intended this to be a LT holding, then I'd do dollar-cost averaging.
The important thing, is to have humility and courage. Humility, to know I will frequently be wrong (at least ST), and my ability to predict the future is poor. Courage to carry out the plan, as long as the reasons I decided on the plan initially, still are true.
As an example: in 2010, I accumulated a large LT position in BP, at an average cost of $32. Here's how I did it:
1. began buying at $47 (way too soon, as it turned out)
2. continued buying in equal-$ increments, all the way down.
3. when the spill was finally capped, and the stock started to go up, I started selling, again in increments
4. sold all my higher-cost increments, when I could get out even. Held my lowest-cost increments.
5. The stock is now back to where I started buying. That happened quicker than I thought it would. I would have been prepared to wait a couple of years, to sell my hi-cost shares.
6. post my position, and reasoning, in real-time, then back-check a year later. I print the chart, then use colored markers for all buys and sells, and look at what I did right and wrong.
posted my BP journey here: (each post replies to my last post) Message 27061266
I intend on posting my KLIC trades in real-time, with occasional comments, here: Message 27075609 |
