hi

PCA is configured based on certain assumptions.

1 It assumes that the scrip you have chosen falls from 10 to 4 and springs up
again over a time period.
2.you use a averaging process as price goes down.

How do I protect my capital when the stock I chose falls from 10 to 4 and never
gets up again?
What kind of precautions I need to observe while choosing my stocks?

pca does not choose scrips.
I have to choose them.
If I had chosen a scrip that has no fitting characteristics to pca then?

Hope I can get some clear answers to these questions.
cheers
rvlv