Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SS Heatwole who wrote (13415)	11/3/2000 12:04:34 PM
From: OldAIMGuy	Respond to of 18928

Hi Scott and ALL, Back this last winter when we started to see the swelling of the "Bubble" that was occurring in the markets, I shifted my Resistance heavily to the Buy side while reducing the Sell side. This also required me to make a slight upward adjustment to my Portfolio Control values to keep the next buy and sell points about the same on each investment. By doing so, I was then using my "vealies" as my Sell Resistance and using a very high Buy Resistance. In many cases Buy SAFE was 20% or higher and the Sell SAFE was zero. Once we got passed the worst of the April-May bashing, I thought I'd shift them back, but have been content to leave them where they are. The higher volatility stocks have the highest total SAFE (buy plus sell SAFE) and usually have most of it on the Buy side still. I guess I'd have to say that this is all still "experimental" as I've only done a minimum of testing on this. Keeping the Buy Resistance (SAFE) high has helped to conserve my cash. As we all know, each buy in AIM makes the next buy that much easier since Portfolio Control is rising. In a "Positive Slope" market where prices are rising all the time, a small SAFE seems to work well. In a flat market, maybe a balanced SAFE would be best. In a declining market, it appears that having high resistance to buying and low on selling looks to be good. However, all this means yet another subjective evaluation by the user. I've been content to leave the SAFE values where they are now since I'm still using very generous buy to sell ranges and LIFO gains. The Idiot Wave and my 'vealies' should do a good job of capping off the Cash Reserve should we return to a bull phase again. It is looking more like a trading range market to me, however and these settings seem to be working okay. When I'm tapped out of cash, it's very hard for me to resist selling every time AIM tells me to. I don't like waiting when I know the price already qualifies for a substantial LIFO gain and is at or above my next calculated Sell price. I tend to be less anxious when there's lots of cash in the pot. So, when ADCT ran up this week, I kept entering new GTC orders as quickly as the last one filled. Well, now I have a 15% cash cushion in case we stumble. That feels good. My intent in discussing these things here is not to confuse the issue of what's "right" but to show that AIM's flexible and can be molded to the personality of the user. I do feel that making frequent changes to things like SAFE and minimum order sizes just confuses the workers down in the Warehouse. So, once I've made changes, I usually stick with them for quite a while. It doesn't mean I won't change them again sometime, just that we can get over-analytical and that leads to too frequent changes. Best regards, Tom