Questions for experienced AIM'ers....
Hello everyone. I'm new to this message board and have very recently learned about Lichello and AIM (have yet to read the book, but it's on order as I learned about AIM less than a week ago).
I am fascinated by this method and it seems to be very congruent with what I've always suspected, but have been afraid to try, because the constant message you get is "the trend is your friend" and "buy into strength, sell into weakness". That is all well and good, but how in the heck do you buy into strength, without missing much or most of the move and getting in near the top? I have bounced around from various TA methods and have looked at everything from indicators to price action alone. I have been growing more and more skeptical of TA as time has passed, as for every time you can find that it worked well on a chart, you can spot other times where it flat out didn't work.
With all that said, I've done the best investing/timing, when I've intuitively used forms of this (taking profits when the market was rising and buying when it was low). This was a number of years ago and before I investigated TA. Since my TA saga began, I can't say I've lost a lot, but I've certainly missed out on a lot of opportunities, primarily because I've been paralyzed with TA.
I can't say for sure, but it seems that if nothing else, AIM will give you great confidence to at least enter positions. Over time, I believe this will be a very good approach for me.
The main question that I have is this: What is the conventional wisdom (from the most experienced AIM'ers) regarding trading vehicles? Should I use single stocks, ETF's, mutual funds, leveraged ETF's or what? It seems there probably has been some evolution since the time Lichello wrote his last book.
I have never been much of a stock picker, so I'm leaning more towards ETF/mutual funds. However, closed end funds might be a little more volatile, which has some appeal.
That would lead to my next question, is what kind of volatility profile should I be looking for?
Thanks in advance. I'm certainly not asking you for all the answers without having done my homework. I just want to get a better idea, BEFORE I read the book, so that I can take more away from it.
