A.I.M. Users Bulletin Board

[Conrad]

Hi Too Fuzzy,

What you Suggest is one of the many things you COULD do, but that is not quite what Ocroft suggested(and does). Remember. . .I am not advising anything here. . just interpreting what generically happens under the Ocroft Method

If I would advise anything. . .then I would advise you to buy a Vortex Method Program

1 If the price keeps dropping you do indeed keep track of the Buy Advises AIM gives you and add then up as you go(Case 1). . .not actually doing the buying, but you enter the Buys in AIM;

2 In case 2 you keep a record of the Last Single Buy before the Price Reversal. . . (Or you record the Buy Advice at the Point of the Price Reversal. . this is simply a personal Option which you can also apply in Case 1)

When the price reverses you can use any Buying Point Critera you like. Either the Cross-Over Methods you prefer OR simply a certain percentage price rise for executing the accumulated Buys. . .Your Choice.

It is certainly an Option to do everything different than Ocroft did. . . That is not really a significant point here. Case 1 and Case 2 are 2 Options.

If you think you need to have a 30% profit before selling out then you simply wait for that 30 %. . .but you might have to wait a long time for it and the higher you set the profit target the more likely it becomes that you miss the Profit Sell-Out, because the price could dump down any day, and then you miss the 20% Profit that Ocroft found sufficient.
You method would be the TooFussy Method

In practice "To let the price rise 'As long as Possible" is something that you have no control over. . .It is NOT in you hands "to let the price rise". . . Al you have control over is to decide when you want to sell.

Ocroft decided that 20 % Profit was enough for him , and he stated that it gave him above Average investment yields and generally a higher yield that an AIM on the same equity would have give him.