A.I.M. Users Bulletin Board

[Toofuzzy]

Hi SF

SHORT ANSWER IS TO USE STANDARD AIM

If you used 60 % SAFE and 5% min order size a security would have to swing 65% from selling to buying to get a trade. You would have securities stuck in a hold zone without trading FOR YEARS as the price bounces up and down without trading.

With standard settings a security has to move 15% for the first trade (something that is posible in one year) and 5% more for a trade in the same direction.

With standard AIM settings a security has to move 30% from your last buy or sell to the reverse to get the next trade. Again something fairly likely when a market shifts direction. If SAFE was set to 60% you would need a 65% move to get that first reverse trade. Something much less likely to happen. You would be giving up the volitility capture advantage of AIMing.

In prior questions you asked about using more volitile stocks rightly guessingun that would give you more volitility capture ( if they dont go broke) and now you are asking about something that will grind the trading to a halt.

STANDARD AIM IS A BALANCE OF THE UNKNOWN

You could say I dont know which way the market will go ( trust me, you have no clue and my screen name speaks for itself) so I will put 50% in a global stock fund and 50% in cash. I will then rebalance ONCE PER YEAR so I maintain my allocation. That will automatically have me sell high and buy low. AIM has you do the same thing.

You dont know which way a security will go, so start with 50% in both stock and cash.

The 50% cash will also allow you to buy down to a 50% drop in the securities price. That is also a balance. It is just a starting point. If a security goes up after starting an AIM account the cash reserve can go much higher. You should let it.

There are only two times that I recall I needed more that 50% cash FOR MY WHOLE ACCOUNT and I was sorry I ran out of cash to invest. That was in 2000 to 2003 and 2007 to 2009

USE STANDARD AIM SETTINGS

Not always
Toofuzzy

PS: USE STANDARD AIM SETTINGS