Wednesday, February 21, 2007

Whole Foods Market

I took a miniscule position in WFMI a few weeks back on a breakout from its downtrend line. Earnings are expected this evening and I expect a gap down open tomorrow where I will add to my position. I am trying to get WFMI to a position equal to 5% of the entire fund. Currently I hold a position of close to 1/2% of the fund. When trying to build a position I follow a 10-20-30-40 where I buy 10% of my intended position and follow up by adding 20% next, usually at lower levels and so on. If you do your homework correctly and a stock approaches your buy price, any level below that price is a steal.

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