Hello Neil,
Thanks for your reply.
Selengut's system does seem to be very busy. I would not want to try it without the best commission schedule available to me for my personal circumstances. At the present time my commissions cost me $8 at Fidelity, so this is not much of a problem because of the size of my trades.
Also, since all of my trading is done within the confines of a tax-deferred account this would not present a problem......it would be an accounting nightmare to attempt this in a taxable account, IMO.
I have some reservations about him not making any additional purchases until the stock has fallen at least 30%. His rules of only purchasing stocks which pay a dividend, trade on the NYSE, and that have already fallen at least 20% from their 52 week high would not seem to induce many additional purchases. I could be wrong but it seems to me that most of this type of stocks usually only trade in tight trading range unless we run into a 1987 scenario sometime in the future. Thus it seems that in the real world he only buys stocks for their upward momentum. He does not to take advantage of the trading range they might present. My opinion is that with his stock selection universe the AIM strategy is a better system.
Otherwise he does give some advise which has caused me to do some thinking.
Ray
AI
