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Non-Tech : Quiet Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: QuietWon who wrote (76)	9/28/1999 9:25:00 AM
From: QuietWon	Respond to of 186

Position "trading": Enhancing the gain on the position / Not being shaken out Think dollar cost and market timing averaging: Think of the total $ position you want in a particular stock. Then split the buying into 2 or 3 or more buys. Eg. If wanting to put $5,000 into FVCX (GBIX, IMCL, RRRR, etc), currently that will buy about 300 shares. Suppose you buy all 300 shares now at 14 ó. Suppose the price drops to 14 and stays there for a month, you figure it?s not going anywhere and sell (eg. for liquidity)? you incur a loss. Now suppose you bot 100 shares at 14 ó. You still have about $3,500 to buy FVCX or another co. Then you buy 100 at $14 a few weeks later. You?re more likely to do better by averaging since: 1) liquidity position is not compromised vs. the "all or none" type buying 2) less risk (able to withstand downturns) and can sleep easier 3) less likely to be shaken out before a price increase in your favor 4) if stock starts to run up and away before you complete your buying, so what, take what the market gives you ? capital preservation is #1 rule for staying in the game and in the long run it's better not to take a full position on the first round of buying