A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Mike, Re: SAFE for my holdings..........

Generally I take the total SAFE that I want for a holding and split it between the Sell and Buy sides. That said, since around 2000 I have shifted all the SAFE to the buy side and just left it there. So, in most of the cases I can think of I'm running zero Sell SAFE and between 10% and 20% Buy SAFE.

This works for me because I also limit the mount of cash build-up in my holdings artificially. I use a market risk indicator to judge the appropriate amount of cash for stocks and ETFs and then only act on AIM directed trades up to that cash ceiling.

On individual company stocks (I don't have many) I generally use 10% of position as a minimum trade. On ETFs I have used 5% as a general rule.