Use access key #2 to skip to page content.

Another Way to Game CAPS

Recs

4

January 16, 2008 – Comments (2)

The reasoning behind re-upping (downing?) red-thumbs to maximize your score has been discussed many times, but in this market it might make sense to re-up some green thumbs. 

With the market down 10 percent or so from the highs, it makes sense to re-up outperform picks that are priced lower than your start point and that have 5+ CAPS points.  Hypothetical case, you picked XYZ at 100 a few months ago.  It’s now trading at 98, but because the S&P has dropped 8% since your pick, you’re +6 in CAPS.  By re-upping, you bank an accuracy pick and restart your pick at a lower cost basis. 

I cut my one attempt at this so far too close and it dropped below the 5 point threshold for banking accuracy, but I did get the lower cost basis for determing future gains (or losses).

Fool on!

2 Comments – Post Your Own

#1) On January 17, 2008 at 12:13 AM, dwot (49.06) wrote:

Excellent point...

Report this comment
#2) On January 17, 2008 at 11:17 AM, Capsperson wrote:

I was wondering about that...

Report this comment

Featured Broker Partners


Advertisement