Welcome to The PCA System Manual

In these times of high volatility and market uncertainty, PCA is a welcome strategy for managing risk. When initially starting a PCA portfolio, the investor will only commit a portion of the original portfolio to the equity at the outset. Right away, this mitigates risk by not plunging into a stock with both feet. The remaining portion of the portfolio will serve as a cash reserve to fund additional purchases should the price decline. The interest generated by the cash reserve of the portfolio usually more than covers the commissions on trades. Since the PCA system tends to buy shares at a slightly faster rate that it sells, you are "strategically" deploying your cash into the investment over time and are assured a lower cost per share than buying lum-sum at the beginning.

Every astute investor realizes that stock market and individual equities goe through cycles over time. The PCA investor uses bull markets to systematically reduce overall equity exposure and raise cash by locking-in profits, preparing for the next buying opportunity. As an equity holding turns down, the overweighted cash portion of the portfolio is systematically re-deployed back in the equity with the goal of being fully-invested near the bottom. Over time, as the price bottoms and moves back up, the PCA investor has accumulated an increased number of shares at a lower average cost per share. The compounding of both the cash portion and the equity portion of the holding over time are the key to the system.

The PCA system is a "tool" that can be applied to just about any investment plan as long as the user agrees with the basic principle of buying low and selling high. Each holding is customized for the individual user based on the initial purchase price and number of shares. The trading advice can easily be tweaked to suit your comfort level by adjusting the variables such as minimum trade amount or resistances. The PCA user always knows the next buy and sell targets for each of the equity holdings and is always in control of the situation. PCA automatically sizes trades showing exactly how many shares it would recommend trading at any price level. The adjustable user variable make the possible combinations almost infinite. Best of all, the program gives custom trading advice to each investor.