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

To: Steve Grabczyk who wrote (10366)	2/29/2000 9:09:00 AM
From: Bernie Goldberg	Read Replies (3) \| Respond to of 18928

Hi Steve, You sound very much like a friend of mine. I was at his home for dinner last night. His big stock was AMD. He bought it in September 87' just before the big crash. Bought 1000 shares at $31 per. In 1995 he needed some cash to finish building a house and sold it at $32 per share. He likes to look at charts so that he can predict where the market is going next. He has charts with lines and flags going every which way. He listens to all the pundits making predictions etc, etc, etc. I had first read Mr. L's book mid 1995 and I asked my friend for a price history on AMD. I had listened to him complain about the stock for years. With a very crude spreadsheet that I worked up I discovered that $31000 invested in AMD in Sep 87 turned into $88000 using AIM, 88 TIMES the profit my friend achieved. I decided then and there that AIM was for me. Most of the folks here worry too much about too many things. It took me about four hours one evening to input the prices and do the computations for 8 years of one stock, while making $88,000 profit. I didn't worry about selling at the absolute high or buying at the absolute bottom. I let AIM take care of that for me. that is it's job, and it does it well.(by the way the computations were done on a monthly basis) I also found out last night that friend was not totally accurate, he actually had bought 3,000 shares not 10,000. He's got some real estate deals cooking and expects to have some cash to play around with soon. He wants to use AIM. Mr. Lichello was making something simple. He recommends checking your stocks once every two weeks or once a month. With G@I funds check them once every quarter. That's what it says in the book. When you sell 15 shares at 65 and two hours later sell 16 shares at 69 what you are doing is reducing your profits and increasing your expenses. I am looking at the cover of Mr. Lichello's book, the biggest word in the title is AUTOMATICALLY! That's what originally caught my eye. The amazing thing is that it really works if it is given a chance. You guys will probably continue trying to find the ideal AIM stock and the perfect way to time it. It's like searching for the holy grail. There ain't no such thing. As Mr. L. says in the book you've found a money machine. Why don't you just turn it on and let it do it's thing. Bernie

To: Steve Grabczyk who wrote (10366)	2/29/2000 9:15:00 AM
From: OldAIMGuy	Respond to of 18928

Hi Steve, RE: COMS, When you ran your simulations, what SAFE values did you use and also what size minimum trades? Many times as our "favorite" stock hits its stride, we have to make sure our minimum order size (in shares) doesn't get to be too large a percentage of the total remainder. For instance, when GENE started its run, I was using 1500 shares as my minimum, then 1000 shares for a while and now just 500. The minimum dollar amount is easier to keep sized correctly. The reason is that during a long upward price move, AIM caps the total dollars at risk at a figure somewhere above our Portfolio Control value. Keeping the minimum dollar value for an order the same percentage therefore is easier. If we use 5% at the beginning of a rally, it remains so all the way to the end. Robert Gammon is going to give a talk in Las Vegas about his own experience with AIM. In his case he stretches out his buying with his "Half Way To The Wall" idea. I'll let him explain it in May. It's a way to assure that you always buy at least some shares all the way to the bottom. Robert's a fellow Texan, I believe. Maybe you two should form up your own "local" group. The Lone Star AIM Group or some such! Best regards, Tom