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Strategies & Market Trends : APMP (formerly APM) -- Ignore unavailable to you. Want to Upgrade?


To: Rudy who wrote (10963)4/30/1998 12:03:00 PM
From: AlienTech  Read Replies (1) | Respond to of 13456
 
>>I think averaging down can get one in more trouble than he can imagine real quick. <<

I think I know what you mean, but the way to average down is, If a stocks down 1/3rd from its high, buy 1/3rd of your position, Then if it drops to 1/2, buy another 1/3rd of your position till the stocks 1/3rd of the high for the 1 year chart at which poitn you have 100% of your position. Ofcourse you try this with APM and its a good way to loose money. This works real good for blue chips and large companies very well. You would have done very well for most of the semi's with this method. I think even for some of the DD's like SEG, QNTM, WDC flunked it quite a bit but you will be okay if you can hold for a while..