Hi Jack,
Some people feel that it doesn't really matter where on the price cycle one starts AIMing, and for a stock that moves as follows...10,8,6,4,6,8,10...the most profitable entry point is 8.
The reason that some people feel that way is because it is an easily provable fact with a stock that goes 10,8,6,4,6,8,10. Just set up a simulation on PCA. The reason it works that way is because the person who buys at 4 is immediately selling shares and then has a smaller share base to work with than the guy who buys at 8 or 10.
Buying in at any price of the range is profitable. The person who buys in at 4 or 5 just doesn't make as much as the one who buys in higher. Perhaps the bottom-fishers end up monkeying with AIM to make it work better.
Bernie |
