Averaging Up on Wining Positions

[blid2def]

Gonna re-activate this thread.

Looks like one can have many options :

(1) 50% first; if good, show hand - topping up
(2) linearly averaging up : 25%;25%,25%,25% - boxing up
(3) descending proportion : 50%; 30%; 20% - pyramiding up
(4) 20%; 20%;20% and the remaining 40% -

I'm still sorting this idea out. Can't seem to hve a handle on this. Usually juz use gut feeling.

I was only joking with that one!

[HengHeng]

Julian robertson if i'm not wrong when he was his assistant.

[LenaHuat]

I re-read MM's posts in this thread and think I will stick to the simple 'boxing up' algorithm.
Maybe it's time to think abt 'how to let our winners run' and 'how long'. Gonna go and read my investment, O'neill's books

[LenaHuat]

Bump up this thread It's time to let winners run. I won't worry abt "how long" at this point in time.

[winston]

Having a Trailing Stop Loss on winning positions may help to preserve profits while participating in any rally.

The question then becomes how big is the Trailing Stop Loss ? 3%, 7% or 15, 20% ?

[LenaHuat]

Hi Winston
I'm not putting in "stops" at this juncture. I think this rally has got legs, not those of the daddy long-legged spider. In other words, it's not a sucker's rally, it's not a bear rally.

[winston]

In other words, it's not a sucker's rally, it's not a bear rally.

Mark Mobius also said the same thing yesterday Please see the "Mark Mobius" thread..

[LenaHuat]

Bump this thread up so that forumers can sharpen their saws. But IMHO, it's too early to bottom fish.
The greatest fear is yet to be.

[Blackjack]

Agreed..The correction these few days seems heavy. I wonder where it will take us and a suitable entry.

That said I still find it easier to average down than average up. Averaging up seems to suggest to me that we are letting traded prices dictate the value of an investment, instead of increasing our factor of safety as we average down. Of course the argument that market knows best the value of any investment always cannot be refuted though hazy it may be...

[LenaHuat]

The correction these few days seems heavy.

S..E..E..M..s heavy But it hasn't reached its full weight until I see some light. It's pointless buying anything unless there are specks of light in the tunnel