What I always advocate and you should do it now to convince yourself that it may work on what ever stock you wish. Go to YAHOO and any stock you wish click it in, you will note that YAHOO has a spot (used to be in the upper left corner of a company’s site on YAHOO) click on there and it will tell you the past historical prices of the stock.

Copy off a list of that company’s stock prices for the past year or six months, then ‘pretend’ you traded using the Position Cost Averaging program. Pretend you trade monthly or weekly, whatever you decide. Pretend trading will give you confidence in what you are doing and will not cost you a dime, just a few hours of having fun learning to guide your own investment future.

To buy real stocks for a PCA program, I would maybe wait a bit. I have a hunch that there will be more blood in the streets. PCA will always correct itself, but it is really fun when you buy at the bottom when everybody is hidding their heads, and as the future gets better ride the system up, raking off profits.

Try the PRETEND first, learn before sticking your read money on the line.

Be good, your old square head buddy, Fred

I never really understood PCA and was too lazy to read through your book (sorry.) Sames goes for Robert Lichello’s book. Boring to me.

But I think right now, PCA might have a big thing going for it now given the volatility of the markets around the world. I believe at this juncture, pPlaying the volatility card broadly is risky but can also be very rewarding depending on which market your choose.

I’m thinking Indexes and ETFs, not individual stocks at this volatile time.

I’m going to study up on the PCA program. I’m not a statistical type of person. I’ve also lost a lot in the market recently, as have many others. I really question whether the old buy and hold is relevant at this point, though I wish it were. Maybe by Dec. might be time to “harvest” some tax losses? I hate to do that, but I’m trying to prognosticate.

Do you think the PCA sort-term approach is apporpriate at this time using a bunch of various index funds and EFTs from various sectors and countries?

I so, what would you choose to go with and how would you handle the risks of buying high-low and selling he reverse on an almost daily basis which seems to be what’s happening now?

Thanks and be well,

Ola