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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (3096)	12/22/2009 9:57:50 AM
From: chowder	Read Replies (2) \| Respond to of 34328

I buy dollar amounts on every position. Every position starts out equally weighted, even if it means buying odd lots or 35 shares like you did. Only when a position increases will I add to it and let it become overweighted. My AA position was way overweighted, for what I am trying to do, based on the amount of profit it has brought me. On another subject: I was talking with a friend last night about AA. A year ago he asked me to do some reasearch and recommend a stock to him. He said he had $20,000 in savings that he could afford to invest. I spent a good deal of time coming up with a pick because I would have felt horrible if it didn't work out. I recommended AA. He said he would buy it. A few days later I asked him about it and he said that over the weekend, he decided to spend the money on another motorcycle. He already had one he wasn't going to sell. He just wanted another one. Spent 20 grand for it. I was mean last night. I told him if he invested the money like I told him to, because AA went up 100% from the time I recommended it, he could still have his 20 grand and the motorcycle too. He gave me the evil look! (hehehe)

To: Steve Felix who wrote (3096)	12/22/2009 6:36:00 PM
From: JimisJim	Read Replies (1) \| Respond to of 34328

Steve, great reply... I found myself chuckling when I read about the "round lot" syndrome... took me awhile to break that bias myself a few years ago vs. simply plugging into the calculator how much I want to invest and then divide by price I want to pay to arrive at share numbers... I admit that even after doing this for a few year, it still looks weird to me when I review my holdings. However, the longer I hold divvy holdings, the more "odd" those share numbers get since I have them all in DRIPs. I must have missed a post of yours. I am not familiar with what you referred to as the "bouncing principle." Would you mind explaining that again? Thanks, Jim