My Trading Adventure

Dollar Averaging

CP TEH
Publish date: Wed, 27 Jul 2016, 03:23 PM
CP TEH
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All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.


Using AEON as an example, buy in stages and sell in stages too.

Assuming we bought at RM4. Each 50cents lower, we shall buy more using the same amount allocated.

Assume that each time we will buy RM10k (whatever amount we feel 'comfortable)

RM4.00 x 2,500 units = RM10k

RM3.50 x 2,860 units = RM10k

RM3.00 x 3,333 units = RM10k

RM2.50 x 4000 units = RM10k

Each 50cents up, SELL. Example ... we bought at RM2.50 ... sell at RM3.

For the RM3 portion, we shall sell at RM3.50.

No monitoring needed. Just key-in ... till done.

Well ... we do need to be discipline and also have enough cash in hand, consistently to collect the stocks that we like. IF POSSIBLE, buy those giving good consistent dividend (such as REITS).

Note : Personally, I disagree on such a buy 'style' but I do know some doing that.

TEH
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