Lichello’s Golden Little Secret - Automatic Investor

1 lichello s Golden Little Secret By David Gressett Copyright 2002, Adept Prime Corporation, All Rights Reserved. No part of this work may be reprinted, resold, or redistributed without express written permission of Adept Prime Corporation. Table of Contents Foreward _____ 4 Acknowledgements _____ 6 Searching for Opportunity in a Dangerous World _____ 7 Dr. Jekyll, Mr. Hyde live on Wall Street _____ 7 Wall Street Robbers _____ 9 Throw Darts at the Stock Analysts _____ 12 The Experts vs. the Markets _____ 13 Hunting for the Mysterious Crystal Ball _____ 15 Mathematics is An Abusive Language _____ 15 Monster Tamer: A Vision of lichello _____ 17 A Gaudy Little Diamond _____ 17 Visitations by the Master _____ 19 Gold From the Machine _____ 23 AIM vs. Buy and Hold _____ 23 AIM Amplifies Profit _____ 24 AIM Shields Against Loss _____ 38 Schematics of Magic _____ 44 How AIM Works_____ 44 A Brief Demonstration of AIM _____ 45 Setting Up For AIM _____ 53 Getting Advice From AIM _____ 55 Buying Stock Using AIM _____ 57 Selling Stock Using AIM _____ 58 Adding Funds to AIM_____ 59 Withdrawing Funds From AIM _____ 60 Upgrading and Tuning the Machine _____ 62 Swapping Stock For AIM_____ 63 Cash Control _____ 64 Filtering market Orders_____ 65 Optimizing Buy and Sell Resistance _____ 66 The Wizardry of Tom Veale _____ 67 Cash Conservation _____ 69 Feeding the Machine_____ 71 stocks , Mutual Funds.

2 And Index Trackers _____ 71 Durability_____ 72 Volatility_____ 73 Performance _____ 74 Growth Oriented _____ 75 Be a Fundamentalist _____ 75 Win on a Technicality _____ 76 Choose Another _____ 77 AIM Resources and Community _____ 78 AIM Book _____ 78 AIM Resources on the Web _____ 78 AIM Software _____ 79 Afterward_____ 80 Foreward You have picked up the schematic to a Secret weapon that the smartest stock market investors use. It is powerful enough to tame the stock market dragon and put its horde of gold into your pocket. This system, known as Automatic Investment Management, was invented in the late 1970 s, and over twenty years has marveled thousands that have listened to its advice. Imagine if your best friend was the world leader in stock analysis expertise. If you listened to his advice everyday, would the stock market be at your mercy? Of course it would! AIM produces results that world-class experts usually have a hard time matching over long periods of time, and dispenses that advice to you every day, free of charge.

3 If you select a good stock, AIM can squeeze more money out of it than the most cunning day-trader. AIM can be like a magnifying glass for a good stock. For example, with the average investment return of 20%, it will often provide 30%. That s an increase of 140% in profit! It will add significant percentage points to your returns, often more than 10% per year. Conversely, AIM can be your shield against the bloody onslaught of a hostile or fickle market . For poorly performing stocks or bad years on the markets, AIM protects your investments, often subtracting more than 10% from your losses. Sometimes it can even put a Little money in your pocket while everyone else has their heads on the chopping block. You won t have to keep your eyes super-glued to stock prices all day. You won t need anything more than a sheet of paper and a pocket calculator. The whole process takes minutes a day, no matter how many things are going on in the market and in the world.

4 AIM can make you very rich. It is not a get-rich-quick scheme. It is a get-rich-definitely scheme. If you can trust AIM for five or ten years with your investments, it often provides an average return of 25%-35% per year, for very Little effort. If you think a Little harder about how you use AIM, the only limits are your imagination. AIM is among the most effective stock market powerhouse secrets invented. Over the last twenty years thousands of people all over the world have used AIM, from grandmothers to stockbrokers. Welcome to the insiders. This book will put AIM into your hands. Turn on this wonderful Little machine and watch it multiply treasure! Acknowledgements Robert lichello , September 12, 1926 February 1, 2001: Your legacy is remembered. The wizards of the AIM universe, Robert lichello and Tom Veale, are the geniuses behind this particular brand of AIM. Thank you, gentlemen, for enriching us with your knowledge. To my dear wife who was so patient while I spent nights and weekends preparing this book.

5 And of course, I owe all of the prosperity and wisdom I have to the loving-kindness of my best friend Jesus Christ. Searching for Opportunity in a Dangerous World Dr. Jekyll, Mr. Hyde live on Wall Street True story: I put my money down on my lucky number. I had just seen a number of other players walk away with their pockets full, and I was hungry for the same. The numbers started rolling, coming round and round in a whir. My eyes and heart were glued to the turning numbers. I had put down $10,000 and I was holding my breath that my lucky streak wouldn t run out. Hadn t I missed breakfast? For that matter, didn t I miss lunch? It didn t matter, only the numbers mattered, and everything else could wait a week. Or a month. Or whatever. Finally came the time of reckoning. I finally allowed myself to breathe my lucky streak held and I had $16,000. I pulled away from the stock quotes and charts on my computer for just a few seconds to celebrate.

6 I had bought that stock at $ , with only a few minutes of research. It was pure speculation by most standards. But hey, I was the genius that just made a 200% per year investment. I kissed the monitor and got up for a bragging binge .. but wait, I hadn t sold the stock yet. Why should I? This stock is hot and I m going to let this winner run. Now, flash forward six months later. The same company had lost their rights to drill on the land they were exploring for oil because they weren t drilling. The founder (and president, of course) was selling shares by the millions, every day. Their press statements would contradict their mandatory disclosures. And the stock price? Please don t mention it. Did I hold on to this one? Oh yeah. Of course, this stock has to turn around any time now. If I just hold a Little longer, I can get back to $10,000, okay? I had already lost $4,000, even though my philosophy, written in gasoline mixed with blood and lit every morning on my forehead, was to cut losses quickly!

7 Buy and hold you say? What s the point? I might as well invest in something illiquid like real estate or tax lien certificates. If you re going to play the stock market , you should be able to take advantage of that liquidity to push the numbers, right? The stock market junkie that got me involved in this Wall Street Casino would just keep telling me, stocks have the best return out of any investment over the long haul. He was making 6% return that year, and was on the way down. But we both knew that there were people winning big in the market . It just wasn t us. They had to know something we didn t. During those years, I picked stocks based on what was hot, what was moving, and what the analysts were talking about. I was gambling, and losing just as often as I would have at a casino. Unfortunately, this is how most small stock investors choose their investments. But choosing a good stock, or even a great stock, as hard as that is, is not enough to win in the stock market .

8 If you consider market price the measure of a stock s worth, then every great stock that is making you money is doomed to suddenly turn against you and viciously rob you, when the time comes. And you will not know the day or hour that time will arrive. Wall Street Robbers Now if you ve been in the same boat, then you ve learned that the entire stock market has a running practical joke on you. A stock making a blitz for the end zone will fumble as soon as you buy it. A lazy stock will take off like a rocket just as soon as you get off the ride. The laughter you hear is not coming from Wall Street. Everyone there is the victim of the same joke. The real villains are your own greed and fear. You know you re supposed to buy low and sell high. You know you re supposed to cut losers quickly and let winners run. What really happens? You see a stock running up like a raging bull, and you start to salivate. Just yesterday it was trading at $12, and now it s at $125!

9 If I had bought it at $12, I would have made $521, ! So you jump into this market at $125. This isn t exactly buying low. Suddenly, a whole crowd of investors just like you realizes that they got in late and that this puppy isn t going anywhere but into the basket. In the panic on the way out your brokerage account is trampled. You hold onto the stock all the way down to $100. If it just goes back to $110, I ll sell. It drops to 80. If it just goes back to $95, I ll sell. It plummets to $20 as the last speculators panic and will sell for anything. You cut the cord and get out, just in time for the institutional investors to realize that the stock is at a bargain price and drive it up to $140 for another cycle. If you still have some money, you play again, after you ve recovered from your phobia of this wild horse. By the time your knees stop knocking and you re not chicken anymore, you enter at $100. The institutional investors love you; you re giving them all your money!

10 See you at the bottom, sucker. You consider yourself a rational person. You don t make your stock decisions based on anything but sound judgment, so why is this happening? Because Mr. Greed and Dr. Fear are masters of disguise. They can look just like Prudence and Wisdom. Throw Darts at the Stock Analysts One thing that will make you feel much better about this is that all of the professional stock analyst experts are also losers. Too prove that point to the entire United States Senate, an inventive Senator invented the dart board test. He put the names of stocks up on a dartboard and then picked five stocks using a toss of the dart. One year later, professional stock analysts squirmed and wormed as the Senator demonstrated how his dartboard portfolio outperformed almost all of the analysts for the year. Since that time, the Wall Street Journal has performed the dartboard test every year, versus five prominent analysts. Usually they re lucky if even one analyst actually beats the darts.