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

To: Dataminer1 who wrote (8342)	8/29/1999 4:00:00 PM
From: RFH	Respond to of 18928

Great Question, Bill. Lichello just has you do the math at the end of the month and place your order accordingly. It seems that all of us here are "hooked" on GTC orders. I personally couldn't live without them, because on more than one occasion a stock triggered a GTC price and then backed away. I guess I need the satisfaction thinking I was putting one over on Wall Street. (Yea, big deal). It's just more fun that way. In the words of the former Zen coach of the Chicago Bulls, "Don't sweat the small stuff. And it's all small stuff." Sincerely, RFH

To: Dataminer1 who wrote (8342)	8/29/1999 6:36:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Bill, It fits better with my business plan to have the AIM orders place on a "good 'til cancelled" basis. Then I know that the work gets done at the price that I know is acceptable to me for a minimum size trade. At the end of the year, I really don't think it matters much in total return if one trades for the minimums or trades when the price happens to justify action on a periodic basis. In the long run, we'll eventually trade about the same number of shares at about the same average price/share. Mr. Lichello said he was big on updating once per month because he was too "lazy" to do it more often! He does make mention that updating more frequently might possibly make for more trades. He didn't know if it would justify the extra effort, however. As we know, AIM bases its trades upon the value of the equity relative to Portfolio Control. It's not time sensitive but value sensitive. If the values are right, then in good faith to AIM, we should make the trade. I do feel that a "rest period" between trades isn't a bad idea. If we're seeing the beginning of a long trend, then why hurry the next trade? Most times I wait a week to place my next order, however I do usually update the opposing order immediately. (ie. If I sell, I wait a week to enter my next Sell order but update my next buy immediately) With some stocks I wait two weeks or a month. Part of the reason that I like gtc orders is that I'm not an avid ticker watcher. Being mildly addicted to the ticker back in the mid '80s in my own "trading" days, I don't miss it at all now. Part of what makes AIM such a great business plan is that we can have a life beyond the ticker!! I hope this helps in your thinking about the questions raised. Best regards, Tom PS: How soon til we see the new PCA??? :-)

To: Dataminer1 who wrote (8342)	8/30/1999 12:11:00 AM
From: Jack Jagernauth	Read Replies (3) \| Respond to of 18928

Hi Bill, It occurs to me that Mr. L. really never discussed figuring out the "next trade point", and thereby recommended updating prices bi-weekly or monthly. GTC is definitely the way to go, particularly with stocks, in order to take advantage of daily trading ranges rather than looking at the close at bi-weekly or monthly intervals. As Tom indicated, it takes less time, effort and energy as well. Way back in 1983, I had bought a book called The Money Spinner which was based on Mr. Lichello's method (credit was given), and improved upon with calculations of Next Buy and Next Sell, and the use of GTC orders as well. Regarding those comments at Amazon, I would recommend that anyone having trouble with Mr. Lichello's style of writing, read The Money Spinner; it's all there in very clear, concise language. Sincerely, Jack

To: Dataminer1 who wrote (8342)	8/30/1999 7:19:00 AM
From: Bernie Goldberg	Respond to of 18928

Hi, After I have gone 1 month with a stock without making any trades I insert GTC orders. I update my prices weekly with Newport. I never make trades in an issue more than once a week. I generally do my trading on the first and fifteenth. Most of Mr. L's remarks were based on quality stocks. He recommended that over and over. He stated that a portfolio could be made up strictly of Dow stocks. (not all of them, "that would be too many stocks"). Granted he was not aware in the 70's that tech stocks would be as vital an element of the market as they are. Granted that tech stocks are probably more volatile as a group than anything he was aware of 25 years ago. He recommended diversification and quality stocks with earnings which is a still a valid methodology today. I think that guy named Warren has done alright choosing stocks with quality earnings. I don't understand guys who think they can throw seven passes in a row at the craps table. Then, if by some chance they are successful, will go for eight. Bernie P.S. When will we be getting to see the new version of PCA?