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

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To: rgammon who wrote (14084)12/28/2000 9:05:11 PM
From: LemonHead  Read Replies (2) of 18928
 
Hi Robert, I have been thinking about this statement a lot...

Remember, we have dug ourselves into what may well turn out to be a VERY deep hole, one that takes perhaps YEARS, if ever, to get out of.

Here is my perspective. No system (not even AIM) is without it's pot holes and bump's. If you think about the retailer that sells shirts up to Christmas day for $59.95 but the day after they are on sale for $29.95. What choices do they have? Move it out at cost or a loss or let it sit in a warehouse till the next selling season is upon us. A lot of things can change in a year and people may not want to buy this product next year. So this brings us back to the premise of "Risk Management". Can we manage our risk if we do not have the ability to trade? That I believe is the question you put forth...

Our warehouse or franchise is suppose to be managed just like any other business. Competition and market conditions can support us in good times and make us change drastically in lean times. For example. If I buy a train car load of wire for $100 a thousand. And after delivery the market drops to $50 a thousand. My competitors are selling it for $75 a thousand, then I must take a loss to support my customer base. So I support the idea of doing what is necessary to keep the warehouse in business!!! It is sound business over the long haul.

Pipe dreams are foolish... FWIW, If you are not in a position to trade, then you need to do what ever is reasonable to get in a position to trade.

Again FWIW,

Keith
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