Position Cost Averaging

This is the basic idea behind PCA

The concept started with the following idea….

Lets say you bought 500 shares of a ten dollar stock, then the price fell steadily down to four, and then it steadily climbed back up to ten.

Well, all I can say is, if you were a buy and hold investor, you were on an emotional roller coaster for sure.

But if you were a PCA user you would be the happiest investor on the street. Why?…

Take a look at the following…

Investor A and Investor B bought the same stock that bounced from $10 to $4 and back.

Now both these guys bought and held the same stock for the same period of time, but the PCA user deployed his cash strategically and reaped huge benefits over the buy and holder.

I will show them to you in black and white.

The PCA user is up 44% with a profit of $4,376 while the buy and holder is only even, with nothing to show for all that sweating he did when his portfolio was only worth 4 grand.

The PCA recommended 5 trades 3 Buys & 2 Sells over the time period, and allowed an average of only 67% of our 10K investment to be at risk.

The buy and hold investor was 100% at risk the entire time, I guess he didn’t have a great Risk Management tool like PCA.

Its too bad really, because the return on capital at risk was not a mere 44%, it was a whopping 63.1% and better still, we now own 842 shares at an average cost of only $5.90 Per Share.

So overall we started with …

• Beginning Portfolio Value $10,000 , The same as the buy and hold investor.

But now we have…

• Current Portfolio Value $14,376, way better than the buy and hold investor.
• Current Stock Value $8,415.00 58.5%, hmm what do you know… more than we started with.
• Current Cash Reserve $5,960.00 41.5%, wow! actual clean profit, off the table and safely in the bank!
• 842 Shares Owned @ an average cost of only $5.90 and currently worth $10.00  

Imagine that, clean profit in the bank… Boy that feels good.

This looks better all the time.

But if you knew that the more times you compound like that the better it gets, its just like compound interest, only you are actually compounding shares.

Every serious investor that wants a REAL strategy that works should try Position Cost Averaging.

If Investor A got to ride this roller coaster just 2 more times from 10 to 4 and back he would be up to a portfolio value of $27,302!

And all this on a stock that never once went over the ten dollars we paid per share on our initial purchase.

Are you beginning to see the power of Position Cost Averaging?

I thought you would.

Anybody can do this, it is NOT rocket science, just simple mathematics and a great piece of software.

Order Your PCA system today for ONLY $279.00

How To Buy Low & Sell High Everytime GUARANTEED

The Position Cost Averagingtm Stock Investing System was developed by Stocksystem.com as a revolutionary way of maximizing returns on equity investments.

Designed to capture market volatility and use it to the investor’s advantage, it is programmed to do 1 thing - Buy low and Sell High

The PCA system is a software product that generates strategic buy and sell signals on stocks that you select. It lets you know exactly when to trade, and exactly how many shares to trade, to maximize returns on individual stocks.

Tracking your stocks in the PCA System, will alert you to every profit taking opportunity, and signal when the time is right to lower your cost per share.

The PCA System consistently locks-in small gains as prices are rising and accumulates additional positions when prices are low. This system is designed to encompass the well known (but difficult to achieve) concept of “buy low, sell high”.

The PCA system generates profits AUTOMATICALLY, giving specific recommendations on exactly how many shares to Buy Sell or Hold.

Reduce Risk

In these times of high volatility and market uncertainty, PCA is a welcome strategy for managing risk. When initially starting a PCA portfolio, the investor will only commit a portion of the original portfolio to the equity at the outset.

Right away, this mitigates risk by not plunging into a stock with both feet. The remaining portion of the portfolio will serve as a cash reserve to fund additional purchases should the price decline.

The interest generated by the cash reserve of the portfolio usually more than covers the commissions on trades.

Since the PCA system tends to buy shares at a slightly faster rate that it sells, you are “strategically” deploying your cash into the investment over time and are assured a lower cost per share than buying lum-sum at the beginning. Save Time

Using the PCA system to manage stocks requires less than an hour a week leaving you free for other things.

One of the best ways to utilize the PCA system is to pick a certain time each week to update your stock prices, say Thursday evening after the close. Plug in your prices and see if any trade advice is given.

You can then place orders to be executed the next day. Each time you sit down to update you prices, you can use any broker statements to update your PCA. Of course you can always monitor your PCA investments daily if you choose.

Lock in some profits

Any astute investor realizes that stock market and individual equities goe through cycles over time. The PCA investor uses bull markets to systematically reduce overall equity exposure and raise cash by locking-in profits, preparing for the next buying opportunity.

As an equity holding turns down, the overweighted cash portion of the portfolio is systematically re-deployed back in the equity with the goal of being fully-invested near the bottom. Over time, as the price bottoms and moves back up, the PCA investor has accumulated an increased number of shares at a lower average cost per share.

The compounding of both the cash portion and the equity portion of the holding over time are the key to the system. which is intended to be used over many market cycles as a long term portfolio strategy.

Complete Flexibility

The PCA system is a “tool” that can be applied to just about any investment plan as long as the user agrees with the basic principle of buying low and selling high. Each holding is customized for the individual user based on the initial purchase price and number of shares.

The trading advice can easily be tweaked to suit your comfort level by adjusting the variables such as minimum trade amount or resistances.

The PCA user always knows the next buy and sell targets for each of the equity holdings and is always in control of the situation. PCA automatically sizes trades showing exactly how many shares it would recommend trading at any price level.

The adjustable user variable make the possible combinations almost infinite.

Best of all, the program gives custom trading advice to each investor.

Click Here To See Why It Works Or, Click Here To Order Your CD Now!

But that’s not all…

You also get 4 coaching sessions…

• Using The PCA Software
• Building a Portfolio & Asset Allocation
• Tinkering with the settings
• Questions and Answers from new users.

And still there is more…

If you attend the “Tinkering with the Settings” Session you’ll also get
another version of PCA with full back-testing and optimization tools FREE!

This package with the software, the book, the coaching and the additional software is a $758.00 value for just $279.00
CLICK HERE TO ORDER TODAY

You will be glad you did and we’ll be glad to have you.

Welcome aboard!

Sincerely,

Bill & Doug

Investing Systems Inc.

The Position Cost Averagingtm theory, based on mathematics, captures stock volatility and uses it to the investor’s advantage. It signals the action by giving the exact price, and number of shares, to buy or sell creating systematic profits for an investor.

Small gains are methodically taken as prices are rising and additional shares are accumulated when prices are low. The purpose of this incremental adjustment in the amount of stock holdings, is to determine the level of equity exposure based on the price action of the equity itself. (Truly Revolutionary)

The method can best be described as trading around a “core position” in a stock.

The sine wave graph shows how the PCA system buys and sells incrementally. As the stock rises, profits are locked-in, and as the price dips, additional shares are accumulated.

The flexibility of the PCA system allows the user to optimize the trade levels to suit any particular stock or ETF.

What makes the PCA system revolutionary is the compounding effect over time that adjusts the size of the trades to maximize profits as the price fluctuates. As the wave oscillates, trades are executed around the core position.

The frequency of the oscillation over time and the magnitude of the deviation will determine the rate of return.

This method of strategically deploying your cash into a stock and adjusting your exposure is coupled with a compounding formula to produce extraordinary investing profits on individual stocks.

Programmed to buy low and sell high, the Position Cost Averaging formulas were designed to perform over a long period of time and over many market cycles. The system is designed to be a “fixed cost portfolio” and keeps a perfect balance between the cash side and the equity side of an investment. The compounding effect of this strategy, over time, is unbelievable.

The PCA System gives very specific signals on how much stock to buy or sell at any given time. You can determine exactly where your next buy and sell levels are by simply entering prices into the system.

This system is essential for determining at which points it is prudent to “average down”, and at what levels it is wise to “take some profits” with the goal of systematically increasing the portfolio value.

Stock selection plays a crucial role in the performance of a Position Cost Averaging system, and is one of the few subjective criteria in a system designed to be completely objective.

Position Cost Averaging is far superior to Dollar Cost Averaging.

Dollar Cost Averaging is simply hoping the market lows occurred at the time your “regularly scheduled” investment was placed, (Not Likely), and you never get to “lock-in” profits.

Position Cost Averaging generates automatic investment advice that reduces your cost per share at every opportunity, and lets you know when profits are there for the taking.

PCA User’s Worldwide: Austria, Australia, Bahamas, Belgium, Brazil, Bulgaria, Canada, Costa Rica, Cyprus, Czech Republic, Denmark, Dominican Republic, Egypt, Estonia, Germany, Greece, France, Hong Kong, Indonesia, Ireland, Israel, Japan, Korea, Maylasia, Mariana Islands, Mexico, Monaco, Netherlands, New Caladonia, New Zealand, Norway, Oman, Phillipines, Portugal, Russia, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Taiwan, U.K., U.S.

I’m sure you’ve heard the old adage, “If it sounds too good to be true, it probably is.” I ordered the PCA system because of it’s low price but I really thought it was too good to be true. Wow. Was I ever wrong. What a great system!!!! I just wanted to congratulate you and I’m looking forward to the upgrade. Also, I wanted to thank you for all the investing sites that you have. I could spend a lifetime learning about the markets from your info. Thanks again and if you need any recommendation just let me know.
Regards, Mike

… I am also very impressed with the PCA system you advise people to use. After studying the system for a while , I recently started applying it with some stocks and have noticed something new and wonderful happening . I’m buying low and selling high. I may soon begin managing my 401K mutual funds and precious metals holdings with this strategy. Once again , thanks.

Best Regards, Rick “I visited your website and found you did a good job in applying systematic investing to individual stock trading for improved profit. Great job indeed in real world examples!”
Dr. Charles Yang
The Institute of Systematic Investment Research - Washington D.C.

I plugged in the 52 week data on some mutual funds that I have from my 401K to see how it would have performed and the results were incredible. I almost fell from my seat. I just wish I have gotten your spreadsheets a year earlier.

Eugene in Australia “Dear Underground, the above is the reason you should buy this system from Bill, they are small enough to give you all the support that you want, plus they are willing to change to come out with refinements…”
Uncle Fred
Internet Investment Underground Mailbag- October 98

“I think that your new version is a definite improvement as far as I have been able to test it so far.
Dave
United Kingdom

The software system calls all this ‘Position Cost Averaging.’ I don’t really give a damn what you call it. I call it Uncle Fred’s Money maker. If you want to make a lot of money, get the software from the boys at Stocksystem… …If you wish to join my ‘Uncle Fred’s Internet Investment Underground, ‘do so, it’s free, and we would love to have you. It is just a group of hundreds of us exchanging ideas, and learning about the changing Market Place together.
Taken from the “Uncle Fred’s” Buy / Sell Page

I sat on the sidelines for a while then a friend at work and I were sharing stories ( He had lost 30k on a stock ). So out of curiosity I ran a PCA on his stock and you know, He would be up 63% using the system in just six months.
Mike - Internet Investment Underground member

Thanks for the quick response. I have now transfered all positions in the V3.0 version to the new PCA V4.0 system. It appears to be a a great improvement over the V3.0. The new version has many new features such as the “Split Adjust”, Current Hold Range, and Historical Prices, to mention a few. I think every serious investor should take a look at your PCA System. Thanks again.
John Mc

The Position Cost Averaging Software was designed and built by StockSystem.com to implement the AIM system from Robert Lichello.