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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 (7352)	4/29/1999 11:12:00 AM
From: OldAIMGuy	Respond to of 18928

Hi Keith, If you haven't seen any messages by mid-June, you can assume that the Meyers's Rum is working very well! I'm just going to load up the broker with a pile of "good 'til cancelled" orders and sit back! I'm getting back in a race car once more before surgery. Gotta get one more dose of adrenaline before I let 'em cut me! I'm guessing that afterwards I'll not be racing for the rest of this Millennium! All depends on how quickly the neck bones fuse. One of my favorite books is Thomas Phelps' "100 To 1 In The Stock Market". You may have seen me quote from there before - "The reason people don't make more money in the market is that they don't set their goals high enough." This message is brought home by the fact that Mr. Buynhold is pretty tough to beat. Those who think in terms of the next heartbeat don't understand that trading AOL probably wasn't nearly as profitable as if they had AIM'd it or bought and held. However, how many of us would sit idly by with a 160 X gain and not submit to the urge of taking profits? Yes, Buy&Hold would have made $1,600,000 from a $10,000 investment in April of 1994. Of course ALL of it would have to be at risk the entire time. AIM made $450,000 with much greater safety. Only one strong buying opportunity ('96 to '97) let AIM get fully invested. The rest of the time AIM was fighting off Sell Market Orders with "vealies" to keep the portfolio more fully invested. So, as with all things, there's a balance between risk and reward that needs to be understood. 100% at risk can have greater rewards near term. AIM has much less risk but allows us to stay in the race for the entire race. In a ten lap race, we might want to drive closer to 10/10ths, but in an endurance race, that will almost surely mean a D.N.F. AIM's for the endurance investor. Assuming that there will still be some market cycles yet in the future, just imagine how many shares of AOL the AIMer will be able to buy with $200,000 in Cash Reserve available! Sooner or later AIM will own more shares that Mr. Buynhold. That's when AIM wins. This is why Mr. Phelps' book and Mr. Lichello's are compatible. Best regards, Tom