- Bought 10 lots of Stock A at $1
- When Stock A reaches $2, then sell 5 lots (50%) and hold the other 50% to run with the Bulls. The remaining 50% is now at zero cost i.e. all invested capital has been taken back.
Read? Have you spend enough time thinking on your money management stratgeies? (2)
From Daryl Guppy's Money Management Rule
Zero Cost Averaging
This is how it works?
Sell 50% of the position once the unrealized profit reaches 100% of the initial invested capital.
For example:
