A.I.M. Users Bulletin Board

[BowlerBob]

Neko,

Hi
what is reverse orcroft method?

As someone who has used that term, what I mean by it is to use the same method but on the Sell side -- that is, to "ignore" the Sell advice until there was no longer Sell advice, then sell. There is an adjustment to the idea (for me) because I would be selling the entire position when the Sell advice equaled "zero", not just the total of the AIM recommendations up to that point. This is because I do not want to hold a "Core Position" through the down turns of the market. So I am not really AIMing.

This means that there will be occasions when I sell the entire position, only to see it turn back up for further gains that I will miss out on -- so be it. One of the original parts of Ocroft's plan was to look for a gain of +20%, or better, and then put the original investment amount PLUS the gains in another position in order to "compound" the gains. When I finally make the initial purchase, having the Price of the issue get through the Hold Zone to the point of AIM issuing Sell Advice, should achieve a good "minimum" gain.

So, in summary, it really means is to apply the "Ocroft Method" to the Sell side.

I don't know if this is what it means to anyone else.

Hope this helps.

Bob