Bob Brinker's Marketimer

  Thursday June 25, 2009

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Introduction to Formula Investment Plans

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Speculating in the market is not always limited to those who have a lot of money. With some skillful manipulation of your portfolio, you can use formula plans to help you speculate with small amounts of money. There are a number of formula investment plans that can help you do this. Two such plans are the constant-dollar plan and the constant-ratio plan. Once you understand how these work, you can use them to begin speculating on a small scale. However, these should not be confused with the strategy known as "dollar cost averaging."

 
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