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Re: OldAIMGuy post# 40590

Tuesday, 04/19/2016 8:00:49 PM

Tuesday, April 19, 2016 8:00:49 PM

Post# of 47088
Hi Tom, In thinking about your post:

So, we'll buy ~118 new shares but only sell ~87 shares. In share count this could be considered bias toward accumulation.

It occurs to me that if the position tends to have a short 52 week range like many EFTs, wouldn't one want the second sale be bigger than the first so one could capture as much of the gain as possible because you might very well be at or near the maximum historical range? Given that traditional AIM rarely, if ever, sells all its holdings in a position this approach would mean more activity, I would think.

To me this is just the inverse of buying more during a downturn as you get closer to the bottom.

If this is a good idea, then one would reduce Safe when selling, as well as increasing it when buying, I would think.

What do you think?

Best,

Allen

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