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

To: RFH who wrote (6226)	11/18/1998 9:27:00 AM
From: Jack Jagernauth	Read Replies (1) \| Respond to of 18928

Hi Robert, I checked out one of the links after looking up Lichello on your search engine. There was mention of Mr. Lichello's book at Wealthcenter, but it was recommended that investors avoid using AIM (see below). I thought that Tom in particular might like to respond to the drawbacks they see with Mr. Lichello's method. How To Make 1 Million in the Stock Market Automatically by Robert Lichello This interesting work provides a detailed mathematical model of a strategy that could allow you to make money on stocks even if they merely fluctuate in value rather than increase. There are only two problems our modelling of his strategy in previous markets uncovered: 1.) Mr. Lichello seems to have forgotten about commissions. While most trades whould be large enough that commissions are only a small percentage of the total, this slow s portfolio growth. 2.) More importantly, he neglects tax considerations. This not only slows growth, it wipes out most of the value of this model. There are many, many strategies for investing in stocks. Avoid this one. Regards, Jack

To: RFH who wrote (6226)	11/18/1998 11:45:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Rob, I have my Buy/Sell Resistance (SAFE) set at 10% for both sides. Remember that I'm also trading 100 share lots with this stock. That means that the next trade represents about 10% of my position. This expands the range quite a bit. As you can see on the Line Graph, the yellow "Hold Zone" bracket on the right of the screen shows that even this big range isn't beyond this stocks's price swings! For individual stocks, I usually keep B/S Resistance set at 10% each. I'm not sure I would do the same with a utility company, but with these high BETA stocks, there's plenty of profitable trading. Again, I let the stock's price history be a guide in this. I could leave SAFE alone and shrink the size of the minimum order to reduce the range. If I traded 50 shares instead of 100 it changes the buy from $38-1/8 to $39-5/8 and the next sell from 56-1/8 to $53-1/8. I checked out the DogPile site. I had to hunt down a few layers to get to where my own AIM site was listed! JJJ investing and StockSystem show up much closer to the top of the pile than my site. I guess I'll have to get some freebee advs. on my pages for Yahoo and some of the other sites so they recognize me!! Infoseek finds my pages the easiest right now. Best regards, Tom