Jun

24

2004

Easing Into Position During Market Uncertainty

Question:

I notice that all your recent buys have been taken with a half position. Is this standard procedure for you is are you doing it because of the uncertain and volatile market? For adding on to a rising buy, some people advocate adding on 50% of the original buy with the next buy at 25% of the original and so on. Does this make sense to you?

My Response:

Not standard procedure, but procedure in an uncertain market.  Much of that uncertainty was removed with the breakout of yesterday.  Any positions opened at this point will be full positions.  Please keep in mind that there are great stocks that won’t be purchased for the SelfInvestors.com.. i simply just don’t have the time to cover them all.  I try to pick a couple here and there to give members an idea of real world, real time implementation of how a portfolio is run.