July 3, 2009

Day trading online – " Attempts have been made to protect investment funds against some of the losses from adverse fluctuations in security prices and to ensure that such funds will retain some of the profits from favorable fluctuations.

The essence of such plans is that the investment fund shall at all times consist of two portions”a defensive fund consisting of securities having relatively small price fluctuations (high-grade bonds and preferred stocks) and an aggressive fund made up of securities having considerable price volatility (mainly common stocks). As security prices rise, the defensive portion of the fund is to be enlarged relative to the aggressive segment. As security prices decline, the aggressive portion is to be increased through transfer from the defensive section of the fund. Important premises of these plans, "it is clear, are (1) that security prices will continue to fluctuate and that the amplitude of fluctuation of some security prices will be greater than that of others, and (2) that the direction of security price movements cannot be forecast accurately and consistently." A few investment companies have adopted formula plans, and several colleges set up and followed a number of plans in the management of their portfolios. For illustration, two major classes of approach are outlined in summary fashion.

Day trading online – " Attempts have been made to protect investment funds against some of the losses from adverse fluctuations in security prices and to ensure that such funds will retain some of the profits from favorable fluctuations.

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