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Alias Born 05/27/2002

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Thursday, 02/03/2005 9:10:25 PM

Thursday, February 03, 2005 9:10:25 PM

Post# of 136
Everyone.

I have not done anything with my board for a while. Sorry.
I have been busy playing music and doing other things as well as testing my different approaches to the market and have come to the conclusion that good old AIM is the best overall. I still do like Free Shares, DDCA and PPXO just fine but in the long run AIM is probably the best.
BTW, I can not trade using charts or any timing methods like that. I have found out the hard way through trial and error that I do not have the temperament for it. That is why AIM or DDCA are the best for me. Right now I am using DDCA and employing a technique to determine how much to buy and sell based on volatility. It's all quite new but I have been testing it far the last 2 Months.

This is how it's done:
For a 6 Mo. period I find the high and low price (Using a chart). This then is the Range.
I then divide the range by 6 to get a 6th part of it.
I then find the mean of the range (by adding the high and low and divide that by 2).
Next I divide the 1/6th part by the mean price.
This then gives me a number that is a percentage. I use this percentage for the trading range for DDCA PPTM. Simple!
In other words if the percentage is 7% (+/-7%) I use this as my min up or down move to buy or sell. It does work quite well because the swings are well suited to the price range for the 6 Mo. period. The 6 Mo. period is updated when ever a traansaction takes place.
Now, here is the deal; I would think that if I were to take that % and apply it to the "SAFE" in AIM instead of a fixed 10% as in the standard form of AIM it might just work.
If the %. were 7 then my safe would be 7% of the stock value or if it were 17% then of course a much larger safe would logically be called for. A blue chip might be only 3% and then a relative small safe. Remember that the normal SAFE is 10%
If anybody would like to test this feel free. I do not have much time to do so. It does stand to reason that a smaller safe for a stodgy Blue Chip compared to a more volatile issue like SIRI would make sense.

Just some food for thought.

Jibes
TrendSeekers at:
http://homepage.mac.com/bondiblueone/trendseeker/index.html
Please, come hear my music:
http://www.icompositions.com/auditorium/showphoto.php?photo=2973&password=&sort=1&cat=al....

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