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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: JZGalt who wrote (8327)8/28/1999 1:19:00 PM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Dave, It would appear that AIM's closer to the "trading" end of the world and you are closer to Buy & Hold in mentality. I, too, would have made many times more money with VTSS had I never sold a single share. Then again, I might not have been willing to risk as much in the first place!! After all, it was a $1.50 (split adjusted) stock that had yet to earn money when I first bought it!

One more thing that might be different for me than you is that I take interest on the Cash Reserve as current income. With a salaried job, I wouldn't have to do that and also could fund the overall Cash Reserve from current income instead of having to generate it internally. In other words, personal situation has lots to do with how we customize AIM to our use.

Your valuation model could be employed with AIM as far as I can see. Pick a point of valuation where it becomes practical to sideline cash and start using AIM to sell.

All stocks seem to float around in valuation. That's why AIM works in the first place. If you used "vealies" during the low and first half of the average valuation times, then you could kick in AIM's selling nearer the top end. This could be used inversely for the buying. This would require great faith in the valuation model, however.

Another way would be to expand the Sell SAFE range to push the SEll points out and keep the Buy SAFE at zero. For instance, you could use 40% Sell SAFE (or higher) and zero for the Buy side. This could be used in conjunction with the method mentioned above. It's the sum of the buy and sell SAFE that is mostly responsible for sizing the "Hold Zone."

It would appear that confirmatory analysis is pointing you in the right direction for this. I've not fully explored the methods myself. I hope that you'd be willing to be a "guest speaker" at the First Annual AIM Convocation, SongFest and Sainthood meeting.

Are you going to have to batten down before Hurricane Dennis arrives? Keep us posted!

Best regards, Tom
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