top up time, page-24

I also use a dollar averaging strategy rather than worrying about not catching a falling knife.

However i do have two recommendation even for those who dollar average:
* keep a balanced portfolio (for myself this means an absolute max of 10% in any single stock, and for this to occur i must be the buy of the century). Once you have bought up to your maximum % holding you have CANT BUY MORE, no matter what the price. There is always the chance that you could be wrong on the company.

* Second, keep your buy in points widely spread.

Theres no point in my opinion topping up if a stock just has a couple of % downwards movement. Use 5-10% movements, and in a volatile market, or a volatile stock, increase this to 10-20% movements.

For example with CSL i bought around $28, then again at $33, then just a few days ago at $30.
CSL now represents 2.5% of my portfolio, i am happy to build it up to around a 5% position, but i am also prepared to be patient. If market weakness persists i will look at buying in again at
$27 then $24.