Replies to post #8940 on A.I.M. Users Bulletin Board (AIMUSERS)

[ljk]

Smilin',

I put some stocks into AIM and I trade others, and when the trading fails, I put those stocks into AIM. lol

I trade stocks that I think are moving up, where I think I can make a point or two quickly. Stocks that are moving under momentum, where they may primarily be moving up, and don't have much of a retracement.

AIM is great when a stock is going up and down with some intensity, but if a stock is mostly going up, AIM doesn't give the best return: your shares dwindle, and you don't get optimal advantage of the situation. You are left with very few shares as the stock continues to profit.

Of course, no stock goes up forever and eventually there will be a retracement and an opportunity to buy again, under AIM. I'm trying to deal with the stocks through trading, which seem to be just going up. As I would if I were shorting now (I'm not) with stocks that seem to be primarily going down.

When I buy a stock for a trade, and instead of going up the way I thought it would, it goes down quite a bit, then I have been throwing those into AIM, where the situation gets salvaged. I'll buy more at the lower prices and eventually will be brought into a profit position, just keeping the stock in AIM from then on.

Linda

[Conrad]

Hi Smilin,

You, as some others have done, identify a well known feature of Standard AIM:


Up some days, down some days but no significant movement in either direction. The problem with AIM in this kind of environment is that sometimes it just sits there. There is not enough movement for a buy or sell

It is not a problem at al. Quite few AIM investors are perfectly happy to let the stock twitches go by and only trade on the larger moves. That is Choice not a Problem.

Specifically for these investors they specifically like that feature. They only need to pay attention to AIM every now and then when market moves make then sit up and take notice.

AIM derivatives such as VORTEX, and others, provide an alternative to trade the small ups and downs, each day if you want to(very effectively I might add).

But you do not need VORTEX or any other other program at all. You can modify your simple AIM response very easily and effectively. Hardly anyone buys my VORTEX Program anyway so I might as well plug the slightly more complex AIMWAY:

1 Use a small Holding Zone, say +/- 2% of the last buy/sell action. Different holding zone percentages such as + 5% and -2% are fine too, and even better for certain objectives(to let a bit of the profit run);

2 Eliminate the use of the SAFE in the Market Order. This SAFE is intended to reduce the trading action. Otherwise very useful for traditional AIMing objectives but for (day) trading it is a real KILLER;

3 Apply a Trade Multiplier to the Advice:

Trade=(PC-SV)*M

M could be anything from 1,5 to 10(or more). It al depends on your trading profile.

This strategy is so simple you do not need even to write it down. It is almost the very essence of the VORTEX Method(which is even simpler). You can trade frequently on an horizontal trading range, and if you know more or less the range of the trading range. . . :-). . . then you set the holding zone percentages just within that range. This way you capture the volatility at the optimum trading point. The multiplier value is simply a means for rapidly increasing profits from trading: the higher this value the higher the trading profits.

It's a piece of cake.

It goes without saying that you need to be on the ball all the time and be a bit savvy about it: if you do this and you pay no attention to the market or have no bailout limits...if you are a ZZZzzzzz-type investor this approach may get out of hand by buying into a deep diver TOO SOON, or selling-off high value shares of a steep riser TOO SOON.

This method is best for long trading range market behaviour.

Have peek at

http://home.hccnet.nl/c.kruidenier/vortexus/vortex.html#Translation

if you are the daring type!

I am trying very hard to make VORTEX extremely complex so that people are going to stand in line to buy it, like WALL STREET for example, but I like simplicity and better leave it that way.

Vortex is worth only $ 25, so simple a program is it, but I am told that it is crazy to give it away at such a rediculous price. Who am I to argue this wisdom that I schould charge $ 125?

I am an engineer. Marketing is a deep mystery to me, like the unfolding of the Universe: it makes no sense at all.