Hi Bernie, If I didn't have the book in front of me, then I would have sworn you wrote that yourself.
No, I haven’t attempted it, nor do I have any idea of how it could be accomplished.
That is the very reason I think that it should at least be investigated and reviewed by the BB. We know how long it took for Mr. Lichello to develop AIM, and I suspect that there was simply not enough time or desire on his part to investigate all the possibilities.
I honestly know nothing about "Shorting". I also know very little about "Puts & Calls". In fact, other than my limited knowledge of AIM, I know squat about other trading methods.
That is why I purchased these last two books, I hope to gain a basic understanding. Doesn't mean I will adapt it to AIM.
As you know, I've been real good at buying lately <g>. But, I was buying to soon and not at deep enough discounts until recently. You knew that was happening and I applaud you and Tom both for bringing us back to the "Book" time and time again.
I remember telling Tom recently that I had finally learned that the "Buy's" (sells also)will come to me if I let them. My point is that I finally realized that I don't have to chase them as I have in the past.
You had also advised me a couple of times about "Selling" at to small a gain. It has made a big difference and I learned not to just look at the percentage gain but also the "Real Increase in Dollars".
I really believe that I have some good companies at exceptional costs. I'll be damned if I'm gonna give those shares back for minimal LIFO gains. I may not have adequate Cash Reserves for quite sometime, but when it happens it will be much larger than in the past. Hope I don't have to eat those words.
Back to "Shorts, Puts & Calls". I was day dreaming that If I truly believed that a price was going to drop 20% because of apparent Market Conditions, then why not do it and cover at the Strike Price. It it worked then I pocket the difference. If it didn't work, then I cover and take the shares. It might be at a higher price than I wanted to pay, but still in a company that I want to own.
Maybe I'm Strewie with these thoughts. Some of my AIM buys are based upon a specific dollar area and not a specific percent drop. I have had limited success with those and that is why I thought there might be away to improve over all profits.
Your thoughts?
Keith |
