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OldAIMGuy

10/13/04 1:02 PM

#14213 RE: extelecom #14211

Hi ET, Re: STKL.....
The image is correct and I've not changed anything from the time of that last purchase other than weekly price updates. We didn't quite get enough Umph in this last rally to trip a Sell, so my open buy order still stands at $6.20.

I think you've had a Sell since your previous buy, that is why you're coming back around for yet another buy at this time. I wasn't so lucky. My GTC order never filled on an interrim sale.

Each time I make a buy, I divide the new Portfolio Control value by 20 to come up with the new minimum trade amount. This was Grabber's idea, but I think I use it for a different reason than he did. I used to use the # of shares as the determining factor in the next trades, but now prefer the min. dollars as the filter.

I usually round the trade to the next smaller round lot with STKL. Personal habit rather than anything scientific. This might be why the price is so close to the previous one.

With AIM the price/share in sequential purchases gets closer because of the reason you stated. Portfolio Control grows with the incremental purchase therefore the value drop to trigger the next buy is from a higher "target" of PC.

When I increase my Min. Order Size to be 1/20th of the PC value with each purchase, this negates part of the situation. It also keeps the market orders proportional to the PC as it changes over time.

I'd hope to sell some shares before I buy again, but nobody put me in charge of the price!!!
:-)

Best regards, Tom