I took me a night to sleep over that very good discussion about reentering SLV and at what levels. But sometimes I get the best insights during the night when I suddenly wake up with a ‘aha erlebnis’.
I wrote a message about the irrelevance of selling which half and relax the worry about that the whole average break even price because with selling half the whole averaging down game changes if you sell half out of risk reduction here: https://logicalinvestor.net/forums/topic/slv-4/page/14/ (that too long story in the middle)
I sold half of my SLV some weeks ago at price rounded 19 $. The remaining tranches had historical price levels at an average of 16$. The other half had a better price level of 11$. Both levels are not too good as I took profits on SLV multiple times earlier last year already.
So for me what matters is the following. I should never reenter above Sean’s weekly and daily communicated reentrance levels as a first rule related to market mechanics and his great market research.
Second rule is that I should not reenter above my biting the silver bullet in half level of 19$. Because that whole action would have been useless otherwise.
Third rule is that I don’t care if I enter above the previous first and second half average break down points of 16$ and 11$. Because they are irrelevant now as I have got my returns already by selling half. Those break even points were tied to the averaging down in 3 tranches and valid for that whole set as a complete position.
Hope this example helps some of you as this selling half is a little bit more complex variant of Sean’s very sound and simple investing system because normally we sell all at once. But I am really glad I did bite that silver bullet in half. Too much risk and you keep the other half if it might spike up suddenly. I had really great returns recently and also over the years with SLV multiple times. Thanks Sean!