Replies to post #38782 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Jamil, Thanks for your efforts. I can't seem to match your figure of $44.28. I used $20k position total, 25% cash, June 2nd price of $56.80, 274 shares, PC 14995, 10% buy and sell safe and 10% minimum stock sale. When I used the online AIM buy/sell calculator, I got a buy signal at $47.33 and so when the October price hit $45.06 there was a buy signal. Did you adjust PC for the delayed buys to get the $44.28 buy point?

When you have a series of buy signals, does one keep track of that on paper and total them to execute the buy or does one just use the number of shares that will exhaust the cash store that one has for that stock?

Doing the first might require considerably more cash on hand, which would be fine if you are using a single cash pool for multiple positions. However, this might limit your ability to respond to other AIM signals for other positions, especially when the market is volatile like it is at the moment.

Best,

Allen

[ocroft]

Hi jaiml
"The PC rises after a buy is executed. If the trend eventually reverses, AIM will stop recommending buys, and this is when the PC stops rising. And this is when one executes the (accumulated) buys".

Excellent understanding of what I am saying. Just one thing. The market order column must read zero. Remember, 1/2 of any number in that column causes the PC to rise. One dollar causes the PC to move 0.50. I just choose the zero dollar amount. .
In the case of IYE $45.02 would be my buy entry price

""It is a cool AIMish way of detecting a reversal in the trend".

It is also a method that you can use to decide if this a propitious time to start an aim position.
Go back to a high of where the stock started its decline and enter only on an aim uptrend market order dollar amount that reads zero.
This method will keep you out of lot of stocks that are headed for a steep decline.
I'm looking at a stock that you mentioned at one time, SDRL!


Regards,
ocroft