Ultra OTC Fund - UOPIX Message Board

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Strategies & Market Trends : Ultra OTC Fund - UOPIX

UOPIX 143.01

-1.1%

Dec 15 4:00 PM EST

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To: John who wrote (931)	12/5/2000 4:49:18 PM
From: Bernie Goldberg	Read Replies (2) of 2063

Hi John, I know your question was addressed to Tom, but I am going to presume that you are interested in other approaches to AIM.s I type this I am looking at my AIM 2000 By the Book Award which sits proudly atop my monitor. I think one has to understand that Mr. L's book has been guiding beacon in my attempts at investing to make $$$ while decreasing the amount of risk that I expose my funds to. My sell point in my UOPIX AIM account is at $75.47. In my opinion the reason is so high and so far away from the present price point is simply that I ran out of funds at $56.82. Indeed as my research showed me back around the 1st or 2nd week of October, if I had followed AIM from the beginning of this year I would still have had $20,000 left in my Cash Reserve. This would have allowed me to continue purchasing as the price continued to drop. Had I done that my sell point would be somewheres between 47.68 and about 53.00. Since we have seen UOPIX make the jump from $32+ to in the vicinity of $40 in one day, we can agree I am sure that 40-50 isn't a very big stretch. Once again the wisdom Robert Lichello has been revealed to me. IMO the purpose of AIM is not to increase trading frequency even though many use it that way. AIM's purpose is to *GUARANTEEprofits on transactions. If one were to ignore AIM's advice and start selling too soon, not only would you be selling at a loss, you would be postponing the arrival of profits because you would not have as many shares accumulating profits as the price rises.IMO there will never be a period where one could say, "wow, we've gone a lot lower than AIM was prepared to handle"* . To me that would indicate an insufficient cash reserve at the outset, or too much frantic buyin during the decline. Mr. L. covers it in his book where he says that if you run out of cash you stop buying. He specifically warns against taking cash reserve from a stock that has earned to give it to a sluggard. I am now at the point where I will no longer be amazed at AIM as was conceived by Mr. Lichello is smarter than I am regarding what to do with my investments. I see too many involved schemes trying to outdo AIM that are dependent upon the market continuing in one direction or the order. These schemes are doomed to failure because of one simple fact. AIM is designed to work in a market that fluctuates. It succeeds at that job very well. Bernie in Gunnison Clear skies 42 degrees

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