Hi Keith, Sorry I didn't get back to you before the meeting. Hope it went well.
Yes, not having worked out all the details for the instruction book you've done a pretty good job of identifying the high points. I keep a mental note and also look at the stacked bar graph for guidance. I can usually eyeball about 1/3 of the cash evaporating.
What I meant by re-setting the clock relates to if we'd been on a restricted diet of buying for a couple of months (one buy per 30 day period). Assume for a moment that we've just placed and filled our monthly Buy order on the first day of the month. This is in a long, slow, painful market slide. Then along comes a "Bear Market Rally" two days later that raises the value of our AIM account to the point that we trip our next Sell order! Well this is always a happy event. (It would be much like what happened in January of this year)
Then, the market goes back into its funk and starts to slide. It was my thinking that the SALE Event essentially erased the previous buy, so we could go ahead and buy again as soon as AIM asked. At that point, let's pretend it's now the 15th of the month. We'd start our 30 day waiting period from here and wait until mid-month next month to buy again.
Any rallies along the way which produce a Sell would repeat the process. This would be our "reward" for excellent Sell execution along the way.
This idea is a condensation of my own personal experience. I've not done a lot of testing, back testing, etc., it's just how I've been handling things. Most of my web site is also the "readers digest" form of what I've been doing for the last 12 years. I consider it not the "last word" but a work in progress. If investing were all cut and dried, I'd have long ago become bored with it and moved on to something else. I have a very short attention span (ask my previous employers!). Investing always seems to have new, fresh challenges.
Best regards, Tom |
