For Yamana I sold my positions the last ride up so when we hit $20 I was out. If it had continued I would have thought about getting back in. Then we got the pull-back and I started adding around $18.50 and have added basically every dollar on the way down. The lowest purchase was $14.49. Now when we start moving upwards i'll be booking each of my purchases for 3-6% gains (maybe more if there's a big jump in a day). If there's any pullback then i'll add again and book when it reverses. The main thing is for Gold to be rising and i'll constantly be booking. The reason I do this is that it is impossible to pick tops and bottoms so I plant lots on the way down and book on the way up. This has happened in Yamana basically every 3-4 weeks.
Another example is SKF. I have buys @ approx $100, 102, 103, 104, 107, 115
Now when we reverse i'll be booking them for gains and start planting UYG's (financial longs) so that I can book them on the way back down and plant SKF's again. Make sense????? As long as we're rangebound it's a perfect system.
2 comments:
I see...
Thanks for the explanation !
Joe, from your buying strategy it would appear you book loses when you sell the shares you bought higher and sell the ones you bought cheaper as the stock rises? I'm assuming you're using the FIFO accounting method. Or, do you just ignore the red on the individual transactions knowing that you made more overall? Sorry for the complexity but it never feels good taking losses on the shares I bought higher when I'm averaging in on the way down. Thxs,
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