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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 (14317)	1/11/2001 11:21:52 PM
From: budweeder	Read Replies (2) \| Respond to of 18928

Hi Keith; Both Tom and Robert Gammon had suggestions on how to begin again implementing AIM on accounts where the cash was long gone, and the first sell point was a long, long, way away.......you can check the posts of late December, I believe. Both approaches had merit. I, as most of us probably do, have the same situation in a couple of accounts....what to do....my accounts are tax-free, so no benefits of tax-loss selling to raise cash to start the AIM process at a lower level. My conclusion was it depended on this consideration: If one believes that the account will NOT reach the old levels in a reasonable amount of time (reasonable in the eyes of the AIMer), but instead remain in a trading range below the AIM buy/sell range.....then perhaps it is wise to raise cash by selling some of the stock at a loss, and start AIMing at a lower level. If one believes that the account will return to old levels in what IS an acceptable amount of time.....then, sit on the account until it recovers. I happen to think that the NAZ will be at new highs within two years....that is an acceptable amount of time to me...but new highs may not be seen for longer periods, in which case I will probably wish I had done something else. Other than an infusion of new cash to AIM at these lower levels, I don't know of another way....I join in asking for more creative ideas that some may have... Regards, Bud

To: LemonHead who wrote (14317)	1/12/2001 12:19:11 AM
From: Jack Jagernauth	Read Replies (6) \| Respond to of 18928

Hi Keith, That's a good question. I have at least two AIM accounts, in my tax-deferred portfolio, that are under water. I noticed that Tom dumped LU recently and that is (or probably was) a 'blue chip' stock. I know what Tom has said sometime ago about taking the money that is left from a hopeless AIM account and starting a new AIM account in a security which is more promising, allocating appropriate cash reserve, i.e., not investing all of the remaining amount in stock. GAC.TO is very deep under water and the way I look at it is that AIM discipline requires that I not add cash to the account. Also, right now is the worst possible time to exit; it makes no sense to sell now. GAC.TO may or may not come back all the way, but I am not willing to exit at the bottom. If I decide to exit, I will at least wait for a bounce...they always seem to come along. I have another question to add to yours. Why is that it seems okay for AIMers to consider exiting a loser at the 'bottom' and not consider exiting a winner at the 'top'? I wish you luck with your deep divers. Sincerely, Jack

To: LemonHead who wrote (14317)	1/12/2001 10:00:35 AM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

More on Sun Tzu's "Art of War" For Traders and Investors By Dean Lundell...... Lundell says, "Today's financial markets are the last bastion of unabashed conflict..... To participate, you must be your own general, devising a strategy, gathering information, executing your plan, and adapting to the situationi." Be your own general You are in charge. You are resonsible. When you win,, you benefit. When you lose, only you are to blame. a) Broad trends persist. Discover them. They will survive boom and bust. b) Don't contemplate engaging in war while beholden to another. They could become your ruler! c) Establish and maintain a baseline of survival for your command. d) Know that reality is governed by darwinism; Long Term Survival belings to the fittest. Devise a Strategy OUr strategy is to sell inventory into market strength and to buy into market weakness. Robert Lichello's AIM algorithm provides us with a systematic approach to follow that uses this strategy. a) Sell quality merchandise to those willing to pay b) Buy quality merchandise when the price offers reasonable hope to resell at a profit. c) let the allocation of resources and inventory be governed by the course of the market. Gathering information Today there is no excuse for not being informed. a) differentiate between information volume and quality. b) differentiate between facts and opinion. c) find good sources of judgement where you cannot act as judge. d) Information is trusted only when provided by those proved trustworthy. More later........... Clear Thoughts from Clearwater....