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Discuss the various junior resource companies within the McFaulds Lake Area

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Message: Re: Tuesday morning thoughts
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Dec 04, 2007 03:58AM

Not sure what you are missing in the strategy of lowering your CPS. But will try and explain.

You have two lots of shares lets say 5k shares of NOT in your core position and 5k of traders. Lets say they each cost you $5.00 per share. You sell your trading shares at $5.45 you realize a gain of $.45 per share. You have now lowered your cost per share of your core position to $4.55 because of this $.45 per share gain. Now the shares of NOT continue to go up and you take a position at $5.70 for 5k shares. The price goes bad on you and you take a stop loss at $5.50 so you lost $.20 per share. Your core position now rises $.20 to $4.75. Next up you buy traders back at $5.30, the price goes up and you sell at $5.80, you made $.50 a share, now take the $.50 off of your core position and it is now at $4.25. Now if a person does this long enough the goal is to get that 5k in your core position down to zero. At this point you are playing the market for free, it sure takes the risk factor out of your holdings.

Now, if a person so choses they can repeat the above strategy and try and earn more free shares of the stock. This strategy is used by many traders that are successful playing the stock market.

I hope you can open up your mind and see the reason behind the above strategy.

Al

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