Let me think ... this is
HuaYang. Its peak was RM1.80 level, from 2008 crash level of 15cents (adjusted due to bonus-issues, dividends).
Assuming we like her fundamentally. The whole property-sector has been down and slump. So ... being a contrarian, we would like to see if it is a good time to BUY at current level.
Using Hu-Li-Yang divide 4 method, RM1.80 divide 4 = 45cents , which is at current level. Ok ... buy first portion (invest means buy-hold for long time recovery and average it down if we get cheaper price).
We shall start small ... say RM10k for it at 50cent (closed 48cents at the moment).
Then, if it is at 40cents, continue to buy a consistent amount : RM10k .... 30cents another RM10k, 20cents another RM10k ... and by the time 10cents, we fully invested our RM50k. We don't know how low it could go ... perhaps now itself is bottoming and property-sector to recover by next year!!
The rule is to hold till it recover ... say , 100%. Then ... we sell of HALF of our portion to take back our capital Whatever there is a 'free' stock ... and we have no worry on it up-down.
We don't care ... we just use a no-brainer way of investing : buy-hold and averaging down if lower. Sell if it doubled.
Get the idea ...just an idea. Don't take it too seriously, perhaps ... treat me a coffee and discuss if this idea could work or not.
Note : I don't know if any readers stuck up there in HuaYang but I m not surprise that there are still many stuck up in many property stocks. Well ... dollar averaging, anyone?
Ok ... time for my jog.
TEH
ncl90
If good stock....price can keep drop?
2018-08-24 08:00