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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Money Mood who wrote (11607)	2/18/1998 10:59:00 AM
From: Karl Drobnic	Read Replies (3) \| Respond to of 31646

Viktor: I'll try explain but pencil, paper and a calculator make it much clearer than on line. For example: Your first "buy" is 1000 shares at $2. Investment = $2,000. Price moves to $4 so your (unrealized) profit is $2,000. I buy 300 more shares at $4, so now I have 1,300 shares at a cost of $3,200 or $2.46/share. Price moves to $6, so 1300 x $6 = $7800. I buy 300 more at $6 so my investment is now $5,000 for 1600 shares, or $3.125/share. Price moves up, I buy again, but my average cost is always trailing well below the (assumed) new trading range. You can adjust the math to fit your own tolerance for risk.