Hi JD, I'll be happy to help about any way I can. Please feel free to browse the AIM web site for the basics. However, the information there might be more beneficial if you've already read Mr. Lichello's book.
Yes, most likely if you'd bought BSX shares in the low $20s, you'd have parted company with a portion of your holding by the time the price reached $40. Then you would have rebuilt your inventory again as the price was smashed last fall. If you go back through the the BSX thread here on SI, it's sort of entertaining. I think most folks thought I was a bit of a nutter selling BSX shares last year when the price was rising. All the news looked great. Then, when the FDA pulled the plug temporarily on their new stent, AIM had me buying lots of shares. Again, I think the BSX thread members thought I was a bit off!
I'm not sure they've yet voted on my sanity, but they think that somehow AIM and I have done okay!
It appears that you've done about 1/2 AIM with your further buying of 3-Com. What AIM does very nicely is proportion the size of the buys to the discount from one's starting point. In other words, it won't buy a $30 shirt for $29.95. It would be happy to buy several shirts, however, at $15, :-)
There's a great Excel spreadsheet template with all the AIM formulae programmed in. With it you can import histories and see just what AIM would have been doing at various prices over time. This is a very good learning tool for seeing just how AIM works.
execpc.com (AIM home page)
Best regards, Tom |
