The state of the art practice of selling an equal dollar amount per period is DCA to benefit the buyer as you are selling for $9.93/share as seen above. Also, if you use a better state of the art technique of selling equal shares per period you will sell for the average period price of $10 as seen above. The improved performance of the SACOUT® method is shown below:
We have talked of using the SACIN® and SACOUT® methods to purchase shares but units would be a better term. They are not limited to shares but could be used to purchase commodities of any type. Periodic purchases or sales do not have to be on a calendar basis. Rather than making a single large transaction, these methods could be used to make several smaller transactions at fixed periods or times selected on any basis, even when you try to time the market.
It looks like we are getting something for nothing and we are. The question is who is losing? It's not the fund manager any more than they lose with dollar cost averaging. Just as with any gain, it's the seller for the SACIN® method and the buyer for the SACOUT® method, but that's not new. Finally, what's the environmental impact of using these techniques? Small as it is, it is a stabilizing influence on the market. They increase sales and decrease purchases when the price goes up, which tend to reduce the price increase; and increase purchases and decrease sales when the price goes down, which tend to reduce the decrease.
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