Hi Evan, I guess I normally buy a new equity the idea that I'll hold it about 3-5 years. What I'm looking for here is to participate in OMQP's long term potential in their chosen field. I think that I will want to be out of the stock by 2005, but not necessarily any sooner than that. However, if the fundamentals change as to not be attractive any more, I'm not bashful about admitting my mistakes and hitting the road.
With the AIM method, one buys and sells small increments of one's position. The fewer shares there are left, the more the stock has to rise to sell any of the remaining. It's a proportional control mathematical algorithm. It works much like Cruise Control in a car. Tiny hills - no change in throttle position, Big Hills - Big Changes. However, it isn't possible for AIM to sell out completely, that has to be your own decision.
I place my orders for my next buy and sell points and leave them there "good until cancelled". That way I don't have to be glued to the TICKER all day. As you can see, the LIFO gain between a buy and a sell with AIM is quite attractive. That gain is what makes carrying part of my portfolio in Cash reasonable. If it earns 35% when deployed, then it can afford to sit at 5% for an extended time before it's used again. I can adjust the Buy/Sell range a bit, and probably will once I have a bit more experience with OMQP.
You may know Bob Norman from Port Washington. He wrote the software for running AIM in Windows. He did a great job and it's saved me endless hours over how I used to keep track of my accounts. His web site is at:
execpc.com
He sells a demo version of the program, along with Mr. Lichello's book on AIM, for about $20. If interested, stop at his office in town next time you are home. He has the insurance business Gantner Norman Insurance, next to the Amoco station. We'll be glad to show you how AIM works.
Best regards, Tom |
