A.I.M. Users Bulletin Board

[SFSecurity]

Hi Gang, About a split minimum stock sale amount, I think I have found a way to do this and tested it using the online calculator. (http://web.archive.org/web/20120609073103id_/http://www.aim-users.com/calculator.htm)

What you do is enter a 0% for sell safe, set the minimum stock value to a percent that allows the gain to run and then enter a negative % for the buy safe such that you buy in closer to where you are at the moment. I bought EGY at $3.1062, and the 52/104 week low is 2.99. While it might go lower than that I suspect at most a few cents, not the $0.50 that AIM suggests with a 25% minimum sale value trade that I set to make the gain run, on the assumption that oil/energy will likely rebound.

If you put buy safe at -20% you get a buy at $2.96, a quite reasonable figure, I think.

Now this is for buying in near the 52/104 week low. If you are buying in at what turns out to be near a high, you can delay buys by using a positive number, say +10%. Assuming the price I bought in turned out to be a high - say because of a market crash - using the same 25% minimum stock value trade and 10% buy safe, buying is delayed until the price is down 25.8% at $2.30. In the 2008/9 downturn this would have been most useful compared to the usual 10/10/5% settings which would have you buy at $2.70. BTW, setting what I understand to be the minimum stock value trade according to the way I understand Lichello, buy safe at 10%, the new buy point would be at $2.59, better than the 5% figure.

So, it seems to me that setting the minimum stock value trade percentage higher and then playing with the buy and sell to get settings for the next buy/sell that fits with your style and where you bought in at is a very viable strategy.

Best,

Allen