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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 (7617)	6/5/1999 11:07:00 PM
From: Dataminer1	Read Replies (1) \| Respond to of 18928

Hi Keith, SE certainly would have been a good candidate judging by the chart and your example. I use some great charting software, "Quotes Plus", that has an excellent scan for volatility and seems to come up with stocks that have a high frequency of oscillation around the moving average. I could list pages full of ticker symbols that would have outperformed using AIM. I scroll through hundreds of charts each night and a large number on my radar screen would have been a perfect fit for the system over the past 2 years. Thats where the fundamentals come in. If you buy the right stocks you'll do great. I like quality stocks with staying power. If one out of 5 stocks in your system perform anything like the book, it won't matter if the other 4 go out of business! I'm never short on stock ideas, just capital! I haven't looked at SE other than the chart, so I can't give an educated opinion on the stock other than it would have been great. You should put it in a watch-list and keep tabs an the subsequent results. I'll keep working on automating the whole thing. Keep up the good work and keep the great ideas coming. Regards, Bill ps. we just upgraded the site if you haven't been there in a while: stocksystem.com

To: LemonHead who wrote (7617)	6/6/1999 9:09:00 AM
From: Bernie Goldberg	Respond to of 18928

Hi Keith, SE looks like a real good candidate based on its volatility. IMO you would need to have a little bit of cash reserve in case its first move is down. Bernie

To: LemonHead who wrote (7617)	6/7/1999 3:22:00 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Keith, In re-reading Mr. Phelps' book, I came across this beauty: "(For a stock) To go from $1 to $100 in 25 years, the price must increase at a compound annual rate of more than 20 percent, not including dividends. The seller of such a stock after 20 years (five years too soon) gets less than $40 for each dollar before taxes and brokerage commissions. The remaining $60 for $1 comes in the last five years if the rate of price increase is constant." If that isn't a good reason for maintaining patience, I can't think of one. I've been facing this quite often while doing my "spring cleaning." Mr. Phelps comments, "it can be argued that selling (out of a position) is a confession of error." But he also says "The only thing worse than making an investment mistake is refusing to admit it and correct it." Just to rub all this in, I sold out of IDTI recently at $8 and have officially missed an extra $0.50 so far in just a week! Still, the house cleaning needs to go on. Some of these companies are just not doing what they should! Mr. P states "Never, if you can help it, take an investment action for an non-investment reason." That must be similar to If it ain't broke, don't fix it! It's hard to determine if a stock is "broke" or just in a holding pattern. More often than not, I'll sell out of a stock because of a lack of AIM activity. This has usually been in conjunction with something that has changed that has lessened the future potential of the company as I've viewed it. This calculation needs to be done on an "after tax" basis if in a regular account. If the stock is "okay" on a pretax basis, then the next stock I buy has to be that much better to make up for the taxes paid to Uncle. So much about which to think!!! Best regards, Tom