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


To: Bruce A. Bowman who wrote (6696)1/25/1999 11:43:00 PM
From: LemonHead  Read Replies (2) | Respond to of 18928
 
To all: MAVK - Revisited… Reversing the Vealie?

I trying to earn my first merit badge so I'm working diligently to get up to speed. Since MAVK is the star of my portfolio <gg> , I tend to ask myself how I would have played it had I known and understood the working principles of AIM?

My first thought while reading the book was that I simply would have run out of cash reserve and that would have been the end of it. Maximum investment equal maximum loss.

But after reviewing some on the fine discussion on Vealie© , Split Safe and Stop Orders, I realized that all the examples and thoughts were in the content of upper movement and not downward movement.

When a stock such as MAVK is on a steady downward trend and after a few successive buys with say 15 to 20% cash reserve remaining, would it then be practical to insert a Vealie© or a series of them to cause more shares to be purchased at lower lows? I realize that this is highly speculative because you have know way of knowing were the real bottom is. But do we really know were the top is also?

Just trying to prepare myself, I have a proven track record for trading in issues that decline.

Any thoughts are appreciated. TIA

Keith