Replies to post #39182 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Toof, When you say

I would be more inclined to use a trailing stop and keep increasing the shares I am willing to buy based on AIM

Am I to understand that this is so you can lock in a last sell near a top to gather more cash for the downturn buying?

How would you set this up in advance using GTC?

If I got that right it sound like a good idea. Thanks for suggesting it.

Best,

Allen

[AImanager]

Thanks for your reply Toofuzzy!

A couple of questions though:

On the AIM Algorithm Changes page, Tom describes how he uses the Idiot Wave as a guide for the Cash reserves for each month. If the V and I Wave are basically the same thing, would it be possible to use the V wave as a Market Risk Indicator to decide whether or not to use a Vealie? In other words: why would the V Wave only apply to the initial stock/cash distribution?

I agree that you would probably want to have some cash reserves to be prepared for a bear market, but if I understand Tom correctly there are times during a bull market when you would have "enough cash on hand for the perceived market risk" and that cash could be turned in more money much quicker if it would be invested in stocks. The AIM Algorithm Changes page shows some spectacular results (doubling the total return compared to AIM-by-the-book, and tripling the total return in combination with Split SAFE).

Also, would the I Wave (or any good Market Risk Indicator) not indicate the end of a bull market (or the start of a bear market), and tell you to increase your amount of cash to prepare for the fall and coming buying opportunities?

Lastly, I'm not quite sure if I get your suggestion to use a trailing stop instead of 'Vealie-ing'. It isn't meant as an alternative to Vealie pulling, is it?

Thanks for sharing your expertise, guys. I really appreciate your help!