Hi SF Security
Once you have learned the traditional aim method, the next most crucial and important thing to learn is how to preserve your cash reserve in a stock or ETF that is in a steep decline. This is a major problem that a beginner aim user will face.
Having an answer to this problem will save you tons of money lost by aimers who were not cognizant of the problem when beginning their aim program.
Now, you made this astute observation;" that if we are headed for a down slope it would seem to me to be wise to stay mostly in cash until some small signs of a turn around are seen."
This method adheres to that observation as follows: if the stock you are aiming is in a downtrend move, do not release your cash reserve as being advised by aim.
Wait until aim advises you to stop buying before you release funds from your cash reserve.
So, when aim is asking for capital, this equates the downtrend slope.
When aim is not asking for money, this equates the signs of a turn around.
Example. Look at the Rowe Price example in your 2001 edition.
Notice the 1973 to 1974 years. From 1973 to 1974 Rowe Price was in a steady decline with aim advising money from its cash reserve; this move equates the down slope,
( it would seem to me to be wise to stay mostly in cash until some small signs of a turn around are seen.)
Aim advised no buys of Rowe price at the 5.50 or so price; this equates the turn around.
This is the point that you will release the total amount of funds advised by aim during
the downtrend.
By the way, this is the method that I employ.
Regards
ocroft
