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 total return on PCA is a function of the stock fluctuation, initial investment, and minimum trade amount. 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.
More information about stock selection can be found in the user's manual and on the various websites found on the Stocksystem.com Links Page.
See some Real-Life Examples of stocks that outperformed using PCA
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