Replies to post #30642 on A.I.M. Users Bulletin Board (AIMUSERS)

[AIMster]

Hi, LC,

Good to see you posting again!

The concern over leveraged funds is not unwarranted, for the average, buy-and-hold type investor. For those of us using a system like AIM, however, the results may be far more useful, as we're employing a tool designed to capture volatility. The more volatile, the better it works.

That being said, another test might be to buy and sell the matching pairs each day, as they're designed to mirror the daily, rather than longer-term performance. If the daily gain exceeds the daily loss from the mirror image, the system might work.

I think I'd still trust AIM to it first, though. Fewer transactions and associated costs.

Best,

AIMster

[Conrad]

Hi LC, I have read the link a bit:

The funds mirror daily returns, not long-term performance, which can make them even more difficult to fathom.

Quite true, but at least if one understand the underlying equity there is a fair chance of making dough on them. It comes down to studying the equity one is investing in and then investing will be effective, on the average.

"If you want to gamble, go to Vegas — you'll have a better time," says Dan Calabria, author of Mutual Funds Today … Who's watching your money?

This guy Dan Calabria is a ding-dong! He probably doesn't dare to invest himself, so he just writes books and spouts out nonsense ( I hope I am not going to have to eat my words on this!).

If you go to Vegas everybody is watching your money. . .to take it away from you! . . .and they usually do! There is little to fathom there. . . unless you want to spend a lot of time understanding the games that are played there and having to pay the piper as you learn.

My cousin told me 50 years ago "Its easy to learn how to play the billiard game well. . .it just will cost you a pocket full of dimes and a lot of time while you drink a lot of beer". . . to play a game in the local Cafe then cost 1 dime, but I was too young to play, so I bought an ice cream instead, with the only dime I had.

Nothing has changed since then(except the price per game and now we can choose pool or snooker as well :-))and more so it is true for investing. . .hundreds of instruments to choose from.

I have now started to invest again. . . small time though. . .to learn the game a bit better (swimming the river). . .a few days ago I knew nothing about turbo's and now I am getting the hang of it. . .a bit. . . and possibly having to spending a pocket full of Euro's instead of dimes. Going to Vegas is boring I think. . a lot of noisy drunks to content with and girls that look for a free ride. . .is THAT fun? For me it cost me a bundle to go there before I even get a chance to loose the rest of the money I have.

My turbo EUR/USD Short, 1.448 ran up from -100% ROTAI* (annualized) on the day I bought it(€ 10 cost to buy)to 5335 % 1 day later! One day after that it dropped to about 1000% but rebounded to 1780 % at closing time.

My other investments are Flat Liners. . .creeping up in value, but no faster than a snail in a deep sleep :-).

The only thing I have to do now is to fathom how the gears of the EUR/USD turn so I will have some clue when to get out before the Stop-Loss does it for me. . .for now I am ahead in this game, and as I fathom it the EUR/USD will creep down a bit more for a while yet. . . I do not yet fathom it a lot. Maybe not at all as yet.

I will sleep as a baby tonight. . . .as an old baby that is:-)

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* Of course I realize that the ROTAI figure means nothing much for running only one day, but the 22,3 % ROI for one day was exciting nonetheless.