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

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To: Dataminer1 who wrote (6600)	1/12/1999 11:42:00 AM
From: OldAIMGuy	of 18928

Hi Bill, It's much like the debate over which way is the best way up the mountain. You still have to get from point A to point B. The only difference is in where we take our breaks!! I use limit orders as it's like having "guaranteed reservations" at the motels along the way up the mountain. The other way, one may arrive and find a "no vacancies" sign glowing out of the darkness. Seriously, I'm not sure there's an answer to this question. It's more personal preference. For me, the thought of "missed opportunity" weighed more heavily than "greater profit." Part of this comes from being a relatively disciplined "trader" of stocks before becoming an AIMvestor. The other part is that I have a business plan (AIM) that guarantees me great LIFO gains every time I turn over some inventory. If the LIFO is fat enough to satisfy my business plan, I should stick to the plan and execute the order when it's at that level. I can always expand the LIFO gains other ways if I feel it won't inhibit trade frequency. I really don't have an "accounting" answer as to which is a better method. It depends on the "times", also. When the market is perpetually rising, then probably time-directed trading might be better. In a choppy market, limit orders might be more effective. In a declining market...... Well, who knows!!! I'm an optimist and don't like to think about that!! I guess it would be possible to "switch gears" to take advantage of what sort of market we anticipate, but that just opens up a chance for judgement errors. I guess it's sort of like debating whether LIFO or FIFO tax base is better for your account overall. In the end, our kids will still inherit what's left of it!!! Best regards, Tom

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