A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Allen, Re: AIM trades and order size............

In my case, each sequential sale is sized the same in dollar value. (percent of Portfolio Control) However, that is the "minimum" trade size at the target price. Should the price/share overshoot my target, then AIM and I would size the order appropriately larger.

I look at the equity side of AIM as being inexhaustible where the cash is finite. Further, since I generally build in sort of a bias for accumulation of shares, I like to take any selling opportunity I can - even if it is just a minimum dollar and share order. That helps to keep the cash register full of greenbacks.

The finite cash reserve can be exhausted in a sharp downturn or in a protracted downturn. I therefore tend to set up AIM rules to conserve cash. The use of a percent of the Portfolio Control as a minimum dollar amount keeps the order size growing on the Buy side. This slightly increases the discount needed in sequential buying. The deeper the discount, the bigger the next bite.

Best regards,
PS: Thanks Toof for the reply to Allen's question.