Replies to post #308 on Advanced Automatic Investor

[Toofuzzy]

Hi Leap:

I came in to this discussion in the middle but I think AIM "by the book" deals with the problem of a stock sinking into oblivian. It does this in your innitial allocation. You decide how much you are willing to invest in any one stock or fund, whether that is $2,000 or $20,000 and then you invest 1/2 in cash and 1/2 in stock (or whatever % you decide). If a stock sinks you will only lose what you devoted to that one stock or fund. Hopefully you do not take your life savings of $100,000 and put it in one stock but instead invest in 10 or more in different industries which will still leave you 50% in cash. (If all 10 of your picks go bankrupt let me know so I can short anything you expest to buy.>GRIN<) On the other hand if you only have $5,000 but expect to save $5,000 per year you could invest in one stock per year and diversify over time.
Hope this makes sence.

Toofuzzy

Take the road less traveled. It will make all the difference.

[Conrad]

Aye! You have Leaped to the correct conclusion!

With VORTEX Vortex the parameters allow you to Leap downwards with big strides, but in order to work the system well you need to be on the ball: if the price starts rising just above the next Leap down it makes sense to buy this last Leap down above the predetermined Next Buy price. This is the principle of the Buy Stop principle that I discussed and which is almost identical to the MACRO AIM that Don Carlson designed.

If on top of that you pick the Options optimally then the profits will hit the roof in the recovery.

In my discussions on the Dutch website http://www.marksmeets/nl I make a comparison between the two operating modes of VORTEX AIM: conservative and aggressive.

The conservative VORTEX mode is like flying on automatic pilot: you have time to drink, eat and even take a nap. Minor deviations in wind direction or air density produce well defined reactions to keep the destination in focus.

The aggressive VORTEX mode is like a F16 jet fighter in combat condition: the pilot's experience and his high adrenaline level makes him super keen on everything that happens and his reactions to the external events are almost instantaneous. The game is essentially the same: he still want to get home, alive, but only after making multiple kills, and returning without any reserve weapons or fuel on board.



Conrad