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Re: lostcowboy post# 5290

Monday, 10/07/2002 3:43:01 AM

Monday, October 07, 2002 3:43:01 AM

Post# of 48399
Hi LostCowboy,

Yes the website is the effort of a lot of people with Lott the owner, as far as I can see.

The example of the losing stock which absorbs all the money, is very good. This is also one of the risks of REBAL.

I was not under the impression that Lichello kept shares/cash of one stock seperate from each other, rather the contrary. As an example(for tax reasons) he states that each buy will be done in a new stock so avoiding concentration in a losing stock. Page 189: When AIM says Buy, I 'll just buy another stock. This opens up the possibility to use reverse scaling with AIM. When AIM flashes a Buy, you Buy another another long term grow stock to your portfolio. When AIM flashes a Sell, you sell stock of a grower that is not performing. You can rotate between updates, from a non grower to a grower, so pyramiding up. You can use a stop loss and reinvesting the money into a grow stock. This is all regular AIM as described by Lichello.In fact when you have multiple stocks in your machine this will concentrate your resources in winners. I believe that this is indeed the strategey that Lichello is using, see the remark at the top of page 254 where he describes the way he is concentrating his resources in his favourite stocks.

Yes, I also think that you must read about different strategies. You can merge them or adapt them to different stock behaviour(see Don Carlsons research).

Don't know about margin, but I remember reading about the number of short positions on stocks. There are sites that show that. I dont have the Addresses, but somebody here on the forum will have them.

Kind Regards, K

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