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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (24816)	5/15/2000 9:39:00 PM
From: mauser96	Respond to of 54805

In addition to the strategies Mike discussed, there's another way to at least partly transform volatility from an enemy to an ally. Consider dollar averaging your purchases. If it's really a gorilla, or even a powerful king, it will be a profitable company for a long time. The only real problem with dollar averaging is psychological. It requires iron discipline, since you will be buying just when you are most worried. This will also be the time when the prices are best. There are going to be times when any stock market exposure with almost any type of stock exposes you to stomach churning volatility. Some of them are worse than this one. The only way to ameliorate this is to keep some of your funds in cash or something similar. In the long run this will probably hurt your overall return, but it may be worth it if it helps you to hold on during tough periods. Oops, sorry, meant to address this to 100 cfm