A.I.M. Users Bulletin Board

[Nickk]

Hi Adam,

The whole point of the AIM method (and others of this type) *IS* to reduce cash in a bear market ... i.e. buying at lower prices.

Perfection would be depleting your cash at the exact bottom of the market!
and furthermore, buying more shares with each successive purchase as the price went down would be an added bonus ... giving you a pyramid with your biggest gains coming from the most shares of the stock (at the bottom).

So ... if you desire to keep your program from giving you buy signals as the price drops (and even giving you sell signals), then that sounds like how the masses trade stock: buying greddily high and selling low scared.
Resisting selling is good!
That's when we lose money ... selling scared.

That's the position it puts me in: having cash waiting on the sidelines to buy as the price falls ... "keeping some dry powder".

anyway ... that's my opinion of AIM.


you wrote:
...
In Lichello's method if the stock enters a bear market you deplete cash and the increase in PC resists selling, which is wrong.