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Conrad

03/29/10 4:38 AM

#31602 RE: lostcowboy #31601

Howdie Cowby!

Your explanation is exactly as I understand it as to what Ocroft is doing. Thank you! So now I know I am not going senile yet!

Now the puzzling thing is this. When the price has bottomed out and reversed a bit even from 4 to 5 then the FIRST thing that is obvious is the FACT that this has happens. . .one knows this because one is looking at the prices and this fact is obvious BEFORE the price is fed into the AIM Machine and from that the investor can see plainly that a price reversal has taken place of 25% from $4 to $5. That signal is strong enough to decide to buy the amount of shares that has been calculated already for the price of $4. There is no need to look at the PC because at the price of $5 (25% rise) there is no Buy Signal. .and with a holding zone of 10% one would probably get a Sell signal as the AIM system has assumed that the Buy at $4 was executed.

The fact that Ocroft then jumps in at $5 is not relevant. He could as well decide to wait for the price to go to $ 6 to make sure the $5 price is not an incidental jitter, with the price dropping to $3 thereafter.

My point is that he does not have to look at what the PC will do at $5 on order to decide to start buying. The fact that the price is at $5 is the primary indicator and if the stock stays at 5 for a while then it is en even better indicator that bottoming out has taken place.

Why look at the PC then????
Maybe Ocroft could help out here???

ocroft

03/29/10 2:38 PM

#31607 RE: lostcowboy #31601

Hi Cowboy
"Next month the stock price goes up to $5 and PC stays the same, now is the time to make the initial buy. He needs to buy 1492 share at $5."

Thanks for the example.you are correct. Execpt on initial buys, I match the BTB percentage allocation. At this point BTB is 96% stock 4% cash.
I will enter at that percentage allocation. I buy 1965 at shares at the $5 level and put 305.00 in cash reserve.
When i am in the stock, i buy exactly as you example is presented.

Thanks
ocroft