A.I.M. Users Bulletin Board

[Adam]

Hi Conrad, The 20% rule, where you sell all your shares when you have a 20% profit I read about in How to Make Money in Stocks by William J. O'Neil. In this book he describes a method of choosing strong stocks on an uptrend and placing a stop-loss of 8%. It's essentially a method of momentum trading. In AIM we don't have a stop loss and these can be much bigger than 8%. So if you limit your gains by 20% and allow much larger losses I don't see how the method can work.