A.I.M. Users Bulletin Board

[BowlerBob]

TooFuzzy,

Only problem with starting with no stock is if it goes up, you have nothing to sell.

I was only speaking to Ocroft's plan, but LD AIM was created because Grabber determined that the Core Position was never sold, so why hold it? With Ocroft's plan, you would be making the purchase shortly after the stock begins to go up, so there would be shares to sell, perhaps even more shares (bigger position) because the delayed purchase resulted in a bigger position for the same amount of money invested.

I never analyzed it but I always wondered if it was better to start Aiming near the top of the market than at the bottom.

Isn't that exactly what Ocroft suggests? Start AIMing from the highest point -- though, for him, that high point is in the past, not today. He is hoping that the "reversal" from the down trend is what is happening today. This way, he is only considering stocks (ETFs) that have already fallen from that high sufficiently to break through the "Hold Zone" and generate buy signals. He only has to add up all the AIM recommended buys to that point, and "execute" the buys all at one time, when his plan signals the reversal.

Since we don't know where the High Point, or Low Point, is, except through "hindsight", he uses that hindsight for his initial purchase -- if it works, and he is right, he has plenty of stock to sell as it rises. If the reversal is just a temporary "bounce", he now holds that purchase as a Core and follows the same procedure of delaying the buys until a new turning point.


Regards,

Bob