Wednesday, July 27, 2016
Dollar Averaging : GTronic
GTronic : DIVED to support today ... see chart.
Let's us use the dollar-averaging method to buy into it.
Assuming we did NOT buy at RM6, ok? We shall start with RM4 ... just as similar to AEON, my previous recent example.
AEON : http://cpteh.blogspot.my/2016/07/dollar-averaging.html
Assume that each time we will buy RM10k (whatever amount we feel 'comfortable)
RM4.00 x 2,500 units = RM10k (done)
RM3.50 x 2,860 units = RM10k (done)
QUEUE TO BUY : RM3.00 x 3,330 units = RM10k
As it is going lower, we shall continue to accumulate ... every 50cents lower.
The rule to SELL is every 50cents up for each level.
To modify this rule ... I shall place : start buying 50% below the peak.
Example : AEON ... peaked at RM4, we should only start buying at RM2.
GTronic high was at RM6.60 level ... half of it is RM3.30
So, we should only start to buy at RM3.30!! Using RM10k for each level ....
Level 1 : RM3.30 x 3030 units = RM10k
Level 2 : RM2.80 x 3570units = RM10k
This one looks more reasonable ... buying into whatever stocks we like, without using any technical support. Of coz, I am assuming that the stocks that we will buy is fundamentally strong ... GTronic giving dividends too ... just that their profit dropped 60% plus ...
Selling for level 1 is RM3.80 and so on.
Just sharing an idea ... work or not? Can try to back-test and check.
Time to zzzz