NorthStar,
Acually there is a much more technical way of doing this that my friend has incorporated for years. Basically you start with a buy of some dollar amount, say $2000. You buy VECO at say $50, so you obtain 40 shares. Now, for every 10% drop you buy $2000 more. For every 10% rise, you sell a block (unless it is your last block, in which you sell 1/2)
EX: You bought 40 shares VECO at $50. You put a GTC in to BUY 45 shares VECO at $45 ($2000). You put a GTC sell 20 VECO at $55.
If VECO goes to $45 and you bought, you now change the orders:
GTC Buy 49 VECO at $40.5
GTC Sell 40 VECO at $50
Basically, with every trade, you just re-adjust you buy sell points.
This method takes out any emotion, greed, fear, etc. Works great unless the company goes bankrupt or you run out of money. With VECO, you may want to play the 20% points since it moves so much.
Mark |
