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

To: Bernie Goldberg who wrote (7724)	6/16/1999 8:05:00 AM
From: OldAIMGuy	Respond to of 18928

Hi Bernie, I think my last move on APCC was a "vealie" but will have to check when I get to the office. BSX triggered a Sell this week along with CGNX. See what I mean about being an alphabetical investor? Good week for the X's! In your case, it was a good week for stocks with A's in the ticker! Best regards, Tom

To: Bernie Goldberg who wrote (7724)	6/16/1999 9:00:00 AM
From: JZGalt	Read Replies (1) \| Respond to of 18928

Bernie, The way Tom and I had discussed using stop loss orders is after buying a stock and then having it go up was to use take the first AIM sell on the way up and convert it into a stop loss order and let that stock ride up. If you then modify the portfolio control you will get the next sell level as the stock rises. If the stock fails to continue to rise, you use the stop loss order to execute the original sell AIM told you to make in the first place. So in his ADCT example at execpc.com 10/14/1998 Bought 500 shares ADCT at 18.688 on 10/14/98 11/04/1998 Sold 100 @ 24.5. convert to stop loss at $24.5 11/09/1998 Sold 200 @ 25.688. convert to 300 share stop loss @ 25.688 11/16/1998 Sold 300 @ 28.25. convert to 600 share stop loss @28.25 11/23/1998 Sold 100 @ 29.438. convert to 700 share stop loss @29.438 Now suppose the stock triggered the stop loss! Tom would have sold 700 shares at $29.439 for an improvement of 100 * (29.439 - 24.5) = $493.9 + $12 200 * (29.439 - 25.688) = $375.1 + $12 200 * (29.439 - 28.25) = $118.9 + $12 --------------------------------------- $1023.90 on a $20607 trade or about 5% improvement. The risk is an external event which drops the stock significantly overnight as is about to happen to JBL. (Outside of earnings reporting season, these do not happen often.) If they did, Tom's "by the book" method would work better. We did discuss other variations which take a bit more risk but allow you to keep the stock longer as the price rises, but cut and run if it changes direction. BTW, this is unlikely to work with slow moving AIM stocks (which have patterns of buy, sell, buy, sell) but it should work quite well with some of these outstanding growth stocks that Tom selects. These stocks have patterns of sell, sell, sell, sell, buy, buy, buy, sell, etc. It decreases trading commissions and you are only exposing yourself to a minor increase in risk IMO. ---- Dave