Hi jaiml
I am looking at SDRL and your post at 38285 where you were going to make a hypothetical entry.
This stock is a perfect example in my post that I wrote to 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."
Here is one answer.
Mr Lichello wrote.
"The fact that I invented AIM do not and does not mean that my opinion is the last word. I could not foresee the benefits or all the risks.
Too close to the trees to see the forest, and all that."
Now, Aim is designed that when the stock price is falling, the portfolio control is rising and vice versa. This mean that cash reserves can be released on either side of the ledger.
The portfolio control or the stock price ledger side.
Aim advises the stock price ledger side. Observation advises the portfolio control side
Which side produces the better result?
I picks the portfolio control side.
In the SDRL example, since its high of $46.26, the portfolio ledger side has not released any of its cash reserves.
The stock price ledger side has exhausted its cash reserves.
P.S.Couple this with a visual Macd and the probability of success, in my opinion, is very high.
Regards
ocroft
