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

To: LemonHead who wrote (10484)	3/20/2000 9:30:00 AM
From: OldAIMGuy	Respond to of 18928

Hi LH, Bernie and all, With our setting up of minimums for trading, it's important to realize that the lower the minimums, the more trades we're likely to have, but that the "round trip" returns will also be smaller. It's the same with reducing SAFE. We need to look at what's practical as well. If we set the minimums too high, then we don't trade much or at all and then AIM becomes "buy and hold" de facto. I look for a point that assures that in a year's time I should at least see trades in between the previous highs and lows. I want to be able to "collect rent" on the issue if it's not going anywhere but is oscillating. We're all interested in a magic formula but as this forum has shown, there's lots of ways to be successful with AIM. It already IS the magic formula! Keith mentions something important - the long moving average. I insisted on including a long range moving average in my original DOS spreadsheet for AIM (circa 1987). I have enough respect for what Technical Analysis is to want to see what AIM's "technical efficiency" is. Keeping our AIM trades on the proper side of the six month, 26 week or 120 day moving average is not only efficient, but makes the graphs look pretty! AIM doesn't care about the Moving Average and doesn't use it in the calculations. However, it does my heart a lot of good to know that I'm trading on the "proper" side. This may be my 'hidden' method of adjusting AIM. It keeps me from being hyperactive in trading when there's a sudden and sharp reversal of price. (re: biotech stocks in recent times) I consider the long term Moving Average just one more "tool" in making good AIM decisions. Best regards, Tom