Position Cost Averaging

Hi PCA Fans,

So, I though we were screwed as the markets fell apart after we started this model portfolio near the all time highs in the market.

But, PCA did exactly what it was designed to do and strategically deployed cash into market weakness.

We had weakness… lots of it.

The software went on a buying spree all the way down and loaded the boat on shares on everything we owned.

Eventually we stopped buying as some of the holdings actually depleted the cash reserves for each holding.

We did NOT add additional money to keep buying.

As things turned out… we had one heck of a market rally off the lows and as usual, no one saw that coming either.

We started with 11 holdings at a cost of 357,929.00 and  we have had numerous trades generated by the software.

Now we have only 10 holdings as I sold all of QLD. and took a 25% loss on the whole deal.

All told we are down about 1.4% on this whole portfolio and that is not too bad considering what people went through since we started this model portfolio back in August of 2008.

Hi PCA Fans,

I am selling all of the QLD. It was stupid of me to even add a leveraged ETF to this portfolio.

Leveraged ETFs are a screw job the longer you hold them.

You get churned out of profits and there are better places to be.

Sold out. Lost 4,111.00 or 25% on this one… my bad.

Lesson learned.

Class dismissed.

Hi PCA Fans,

Here is a sell on SLV.

61 shares for 965.02.

Now we have 53.7% shares and 46.3% cash.

3 buys and 2 sells have us up 19.2%

Hi PCA Fans,

I am selling 11 shares of XLE for 571.67.

We are now sitting at 87.3% shares and 12.7% cash on this one.

14 buys and 1 sell have us down by 10.6%

Another wait and see holding.

Hi PCA Fans,

I am selling 82 shares of SMH for 2,002.44.

After 15 buys and 1 sell we are still down 2.3% and we have lowered our cost per share to 25.10 from 30.44.

So far so good.