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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 (8545)	9/18/1999 9:07:00 AM
From: HighTech	Respond to of 18928

Thanks. eom

To: Dataminer1 who wrote (8545)	9/18/1999 6:25:00 PM
From: HighTech	Read Replies (3) \| Respond to of 18928

D1:(Or Anyone) Say one starts with $10,000 on Jan 1 and a stock is $20/share. Say it goes up, zig-zags up and down, but never goes below $20 the entire year. In this example, there would never be a buy signal because the stock never went below the original cost(portfolio control), correct? Assume further that it rose to $35 and back down to $21 before going back up to $40.. Am I correct in assuming that AIM would only have sold some thereby increasing cash reserve but since it never went below the PC, there would never have been a buy signal? What therefore can be done in this situation to trigger a buy signal? Even if one were to have set a 0% safe buy, it would not have mattered because the stock value never was below PC, correct? My solution to this (so buying a dip could have been possible) is to increase the PC a certain percentage as the stock rises. Then when the stock goes down from $35 to say $26, the higher PC creates a higher floor for dip buying. Do you see what I am trying to accomplish? Any suggestions? Thanks, HiTech