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


To: OldAIMGuy who wrote (14765)3/2/2001 6:32:14 AM
From: rgammon  Read Replies (2) | Respond to of 18928
 
"I think that many AIMers are doing what you thought - entering a new order immediately upon the last one filling."

Count me as one such AIMer. I do not see benefit in waiting for the longer term trends in the stocks I AIM. I ran a model when I first started my AIM in 1997. Daily updates of prices (and trades) beat the pants off of weekly updates for the stock under consideration. The stock was TXN and the time period was the two years previous to August 1997. Weekly updates with full Lichello rules basically matched buy n' hold for this period. Daily updates with 2% SAFE and 1% min trade gave over 2x greater returns.

I note that YMMV, especially since my model assumed that you COULD actually get in a trade at the closing price of the day. In reality we couldn't do that since we needed the closing price to trigger a trade that executed at the close of the following trading day.

Now, TXN does follow some of those LONG term trends that you talk about in the semi cap equip stocks. The peak to trough price changes are a bit more extreme with the semi cap equips than with TXN. I still believe that capturing as much of the volatility as your capital can withstand will work to your long term benefit in AIM.

Robert