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

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To: Bernie Goldberg who wrote (15121)3/6/2001 11:43:41 PM
From: Steve Grabczyk  Read Replies (2) of 18929
 
Hi Bernie:

"IMO if you felt that the price was going to increase, the best way of increasing the position compounding angle would be to hold on to your shares for the longer period."

These seems a little subjective to me. If I felt that the price was going to go in any direction, of course it would have an impact on my decisions. Unfortunately, I am unable to determine which direction; or for that matter how far it's going to move. Therefore I feel compelled to view the AIM computation exercise as an opportunity for the stock to reach my tolerance (either side), and then I pounce (so to speak). The only difference is that my decision is predetermined via the GTC order. Like I said, a GTC approach changes the dynamics some. After that decision is executed, then the game begins anew.

"Wouldn't one also have take into consideration the possibility that the price could move up 15% on Wednesday and then another 3% on Thursday?"

I guess If that were the case then my tolerance would be 18% rather than 10 or 15%. Clearly this spells out the need for us to somehow be able to objectively measure a stocks amplitude tendencies. If we could do this with some degree of statistical reliability, then we could tune this money machine like one of Tom's Jags.

Regards, Steve
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