Introduction to Formula Investment Plans
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."