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ocroft

06/17/10 8:44 AM

#31983 RE: 1step #31982

Hi 1STEP

The post that i wrote about the PC etc. was just talking about the best time to enter a buy order. My argument was that if a stock is falling, it was better to enter the stock on an AIM uptick price, which stops the PC from rising, rather than to keep avearaging down.
It really had nothing to do about technique. However, below is the technique that i do apply when entering buy/sell orders.
However, If i were you, i would start out using classic AIM on A+ rated S&P stocks that have been discounted. You can start and play with this classic AIM spreadsheet. Here is how to enter an initial stock purchase. Wait until the stock is discounted.
Go back to its high point where it began its decline; put the monthly figures in the spreadsheet and enter on an AIM uptick.
Walgreen example below:37.09, 3515, 32.04,29.24. Enter on uptick.
Rememder, the best time to enter is on an AIM uptick price.
Do not average down while the stock is falling.
http://www.dofusdaddy.com/aim_internet.htm



I will try to explain my process or technique the best i can.
First,it is in a sense based on the Robert Drach/Herzfeld method;
that is profit consistency and the benefits of compounding.
I use classical AIM to tell me at what point to enter a stock.
As for sells it all depend on where i entered the stock. I will
(bailout)on 2 consecutive sells or 15-20% rise(Profit consistency.
I will then look for a discounted stock in my inventory and apply the proceeds of the sale to hte stock.(Compound effect).
Example: ?On 3/?18/?2010, using classical AIM I already explained how i actually used AIM to enter FNLC at $14.78. Now let's assume that FNLC has risen 20% in price.
I would then sell FNLC,(Profit consistency) and check my inventory to see if any stock is discounted.
I notice that Walgreen is a candidate. I will then use classical AIM to find a buy entry point.
The monthly price has fell as follows: 37.09, 3515, 32.04, 29.24. It has 2 AIM buy signals. 32.04 & 29.24. I will enter a buy only on an AIM uptick price. Could go lower.
So, on a price uptick, I would then use the proceeds from the FNLC sale to buy Walgreen.(compound effect)
I hope this gives you some idea of how i use my technique.
However, it is usually best to create a technique of your own for a better understanding.

ocroft







1step

06/19/10 10:38 AM

#32020 RE: 1step #31982

Hi orcroft

I was away. Thank you for your help

1step

1step

06/24/10 11:01 AM

#32044 RE: 1step #31982

Hi orcroft

I have a procedural question on your system

I purchased a s&p guide. There are two ratings using letters. The credit system worthiness and the quality ranking. Which is the apropiate rating you use in your system. Eg. GE credit rating or is AA+ in credit worthiness bur only a in quality rating A . Not A+. Which ranking do you use? Credit or quality rating.

Again thank you for sharing your method


1step