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Technology Stocks : Genesis Microchip (GNSS)
GNSS 2.350-0.4%Oct 31 3:59 PM EST

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To: Peter Dierks who wrote (1180)9/28/2005 9:32:11 AM
From: OldAIMGuy  Read Replies (1) of 1277
 
Hi Peter, Re: GTC orders vs Program Trade orders........
I'm not sure what the latter is. I use GTC orders that are usually pretty far from the current price, so that I don't miss the incremental trades that might occur while I'm off doing something else.

They have worked well enough for me. Most trade at the limit price I set. Once in a while at the market open I'll get a bonus of a better price than what I'd asked for.

I run my portfolio like a warehouse - an Equity Warehouse. I have Inventory that I've accumulated at various prices and I attach a mark-up to that inventory and put out GTC sell orders at those prices.

I'm willing to add to inventory as well. I look at the value I have and what discount I want to be willing to add inventory to the warehouse. I then place GTC orders at those lower levels and let them sit.

Sometimes months go by before these orders will fill. This has been more true since around the beginning of 2004 with the very low volatility we've had. We are starting to see some sector rotation and that's been helpful. Some parts of the account then become active while others are dormant.

The iWave history goes back to 1982. You can see those graphs at
aim-users.com
It's been quite good at calling severe market events. I use a 10%-80%-10% bell curve on the data to determine the extremes of 10% of the database being either High Risk or Low Risk. The 80% middle is the "normal" market.

The Equity Warehouse system called AIM works best with cyclical stocks. It can be applied to growth and also income stocks, but needs a bit of tweaking for those.

GNSS has been a particularly good stock with this method. It has its ups and downs and AIM is delighted to respond. We buy into the dips and sell into strength. We are compounding the overall value with each cycle. Cash is used as an active part of the management.

aim-users.com

AIM doesn't use the 26 week moving average in its calculations, but I plot it to have a benchmark for AIM's "technical" efficiency. As shown in the graph above, I rarely ever trade on the "wrong" side of the 26 Week M.A. It takes a very extreme move to trigger such an event.

GNSS is nearly a Poster Child for AIM!

Best regards, Tom
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