With AIM (Robert Lichello's Automatic Investment Management), we trade OPPOSITE the typical trader. When they buy, we are selling. When they sell, we are buying. As a stock price goes up, they are buying and we are eagerly selling to them. When the price goes down, we are eagerly buying from them.
So, when we are selling, we sell on a price RISE. If the price reaches a certain point, we are willing to SELL. The GTC LIMIT order to SELL does that for us.
Say a price is now at $10.00. A typical trader would perhaps have a BUY STOP order in for $10.50. We might have a LIMIT SELL order in for $10.50. At $10.50 (or slightly higher), he buys our shares from us.
When we are buying, we are buying on DECLINING prices. If the price goes down to a certain point, we are willing to BUY. The GTC LIMIT order to BUY does that for us.
Say a price is now at $10.00. A typical trader would perhaps have a SELL STOP order (aka "stop loss") in for $9.50. We might have a LIMIT BUY order in for $9.50. At $9.50 (or slightly lower) we willingly buy the shares from him that he is dumping in a panic.
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