4. Determine your share allocation

Once you have decided which stock you would like to buy and at what price, you need to determine how many shares you would like to buy and how many steps you want to take to leg into your position.

For instance, you may decide you want to buy 50 shares of a stock and that you want to leg into your position in two stages. In that case, you would buy half (25) of your shares to start things off, and then you would buy the other half (25) of your shares when the stock price rises to your next trigger point. Using another example, you may decide you want to buy 60 shares of a stock and that you want to leg into your position in three stages. In that case, you would buy one-third (20) of your shares to start things off, you would then buy another third (20) of your shares when the stock price rises to your next trigger point and you would buy the last third (20) of your shares when the stock price rises to your last trigger point.

For this example, let's say you are looking to buy 100 shares of ADM and that you would like to split your total position up into three seperate purchases according to the following schedule:

- First purchase: 34 shares

- Second purchase: 33 shares

- Third purchase: 33 shares

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3.25 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."