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irwin

06/26/02 7:19 PM

#89 RE: Conrad #88

Conrad Sliping and sliding..while on a trip to Africa a friend of mind said their guide told them that it was very dangerous there and that he was chased by a Lion once.When asked what he did he said that he ran and he was sliping and sliding but managed to stay ahead of the Lions claws.When some of the members of the group said how brave he was to run and get away they said that if they were in his place that they would have just shitted in their pants.Just then the guide said what do you think was making me slip and slide.
Now you might say what does this have to do with investing well if the market slips you slide.

I thought that AIM was made to function so that you would always have a position and reduce it as price goes up and add as price goes down.So as long as the stock does not go straight up (which will cash you out) or down (which might have you buying into a stock going to zero)this trading around a core position is just a really simple mathematical way to
do what you want which works best when the fundamentals hold true for the stock its buying.
So how can a SR figure if it's up up and away so buy more or down we go abandon ship?
I always thought that if you only invested what you are willing to lose in any one stock and worked at finding good stocks.That AIM would take advantage of the price moves to increase returns and holding between 5-10 stocks would reduce the overall risk.
Just a thought but are AIM'ers trying reinvent the wheel.
Irwin


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irwin

06/26/02 7:21 PM

#90 RE: Conrad #88