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

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To: Bernie Goldberg who wrote (8467)9/6/1999 12:45:00 PM
From: JZGalt  Read Replies (1) of 18928
 
Bernie,

In case you missed it, this is how I operate and AIM just doesn't fit the pattern until the stocks are "fairly valued".

beta.siliconinvestor.com

I think it is pretty funny that you think I have most of my success in selecting stocks that make quick upwards moves, when I think I am finding good long term value in stocks that I'll hold for 3 to 5 years. If they happen to double in the first 3 months after I find them, that's gravy.

I guess we will just have to disagree on my understanding of how AIM works and it's long term potential. The thing that drew me to AIM in the first place was the thought that it could be used in conjunction with my undervalued and overvalued concept. The premise of AIM is you buy more when it is undervalued and sell when it is overvalued and it is the cyclical nature of the stock price that makes the money with AIM vs. Mr Buy and Hold. That is what I've been trying to exploit on my own for quite a while and I've been reasonably successful at it. As I said in that initial post the only thing I have against the plain vanilla AIM is the constraint of selling to replenish the cash reserve with stock that is undervalued. AIM doesn't care about undervalued or overvalued, it is in the general mechanism of buying and selling, but selling at a fraction on the dollar is something I think reduces your performance in the long run.

If you look at Tom's reply, you can see how "Vealies" kept him in the game with VTSS. That's great. He adapted AIM to suit his own personal situation without violating the general premise of the underlying concept. I guess I don't understand why you can't cut me the same amount of slack while I explore when AIM will work on the stocks I select. Right now when I run the simulations on AIM vs. Buy and Hold over the short timeframe that I've been exploring this concept, most of the simulations come out in favor of Buy and Hold although I am starting to see some AIM outperformance in the truly volatile ones (CCRD and VNWK).

----
Dave
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