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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: JZGalt who wrote (7719)	6/16/1999 5:23:00 AM
From: Bernie Goldberg	Read Replies (2) \| Respond to of 18928

Hi, Had a good week AIMing. Got my first sell in AORI after numerous buys used up all the cash. Since I was patient and waited til the 15th (my transaction date) rather than selling 5% when it first became a sell, I'm getting 10% more on 3 times as many shares selling 15% of my holdings. Also sold 8.6% of APCC holdings. MRK just squeezed in there with a 4.7% buy. All in all a good week. Dave the way I understand stop losses they would get you out of a position as soon as the price dropped to the specified price. Wouldn't that be a direct contradiction of the AIM philosophy? I have made the same observation about Tom's trades, but he's been successful with and I guess that's the important thing. More importantly he stuck with the issue for three years and more than tripled his money. We should all be so lucky? Perhaps with stop losses he would have been forced out earlier. Bernie

To: JZGalt who wrote (7719)	6/16/1999 7:55:00 AM
From: OldAIMGuy	Respond to of 18928

Hi Dave, There's always a risk/reward relationship in everything we do. As I see it, after a severe draw-down of the cash reserve, replenishing our buying power is a primary goal. Doing it profitably is also part of that goal. Each sale in a long string of selling is still a very efficient short term LIFO gain. It all meets with my business plan, also. For the Stop-Loss method to work for me, it would have to also not extend my risk/reward envelope very much. There are many ways to skin this cat, and as I've mentioned, some stocks I hesitate in entering the next buy or sell price after a trade. That's because its shown that longer trends are usual with that particular stock. ADCT seems to be one that has very rapid movements and reversals. Stop loss orders along the way for those incremental trades might have helped, but I'd have to calculate by how much. I decided years ago that if I could just consistently make money in the market, I'd be able to sell all the whips and cat-o-nine tails at the next garage sale. I did sell them when I started AIM. It ain't perfect, but the results have been positive without any second guessing or brow beating. There's no reason you couldn't use AIM as the basic signalling device for designating those Stop Loss orders along the way with a rising price. AIM would be happy to continue to calculate how many shares should be sold at each price as new near term highs were established. It might start out with a 100 share recommendation at the lowest (first) Sell point and steadily work its way up to several times that number of shares as the price continued to rise. Maybe you'd sell 500 off on a slight pull back near the short term top. I think that the PCA software or another type of spreadsheet is ideal for making this sort of comparison. I welcome anyone to take the time to make this analysis. I can copy the History file of weekly prices and we could see. What I don't have is the weekly pull-backs that may have come along in between the prices I recorded. Maybe this would have to be done using a daily price history and a set day of the week for each AIM analysis. JBL is probably over-bought for the short term. I think it still has a nice 5 year outlook, so I'm staying with it. I've been watching for further inside selling. There was quite a spike a while ago, but it didn't seem to correlate with a price top (in the $30s). So far I've had pretty good luck with AIM matching the insiders on buying. I'd reached about the same level of Cash you now have by selling half. JBL's had some BIG pull-backs in the past and so far has been a pretty good AIM stock. I've only owned it for about 18 months so far. JBL's another of my stocks that might have benefitted from your SLAIM (Stop Loss AIM)! Best regards, Tom