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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 (12044)	7/13/2000 8:15:58 AM
From: labestul	Read Replies (2) \| Respond to of 18928

I think this post from Bernie makes clear a very important point. It also indirectly suggests a question which I would first like to address. There are two main types of posts possible in this forum. These are: (1) theoretical or academic and (2) practical. Of course there are other "social" type posts too but the question is ... Of these two main types of posts which type should appear in this forum. To me the clear and obvious answer (and I suspect that none will disagree with me) BOTH TYPES ARE APPROPRIATE! Of course the real problem is that the two types could tend to become confused. For example let's return to that classic 10, 8, ... 4, ... sequence. The question "what is the optimal entry point" is to me a very interesting question and moreover not that simple. The difficulties include but are not limited to the definition of term "optimal" for example. Attempting to answer such a question is fun for some people at least (certainly for me) and in addition it can be very instructive and therefore possibly of some future practical use although such practical use would be extremely remote and indirect. In analyzing such problems we tend to lose sight of the forest for the trees. In this example even if 8 say were the "optimal" entry point for AIM this would be totally irrelevant from a practical point of view. Knowledge of this fact (i.e. 8 is optimal) is based on my knowing the exact future pattern of the prices. If I knew that I would never AIM this stock at all. I would always invest 100% at 4 and sell 100% at 10 each and every time! Thus as interesting as this problem might be the premises upon which it is based are such that any results are completely irrelevant from a practical point of view. The only practical knowledge that we gain from this example is: NO MATTER WHERE YOU START YOU WILL MAKE A TON OF MONEY ... SO DON'T WORRY ABOUT IT AND JUST JUMP RIGHT IN. This is the essence of Bernie's practical message. Thanks Bernie for reminding us of the important practical side of AIM. This is after all our main purpose here ... the practical use of AIM. Barry Savage mailto:bv@bsavage.net