A.I.M. Users Bulletin Board

[ls7550]

why not start a "Virtual AIM Program" in the stocks/ETFs/Mutual Funds of your choosing, beginning in January. Since there are an average of 21 trading days per month, you might start 21 new programs in January, one for each trading day -- once you have it set up, it would likely take only 10 minutes, or less, per day

For 10% SAFE, 5% minimum trade size B and S are always 1.15 and 0.85 respectively (see below).

Portfolio control is always the same as the initial stock value amount at the offset.

So more like a 10 second initial calculation and a quick look up check at each review when running a paper based record set.

N = Portfolio Control divided by Number of Shares

For AIM next sell calculate S = 1 - SAFE - Minimum Trade Size %
i.e. 10% safe, 5% Minimum Trade Size S = 1 - 0.1 - 0.05 = 0.85

For AIM next buy calculate B = 1 + SAFE + Minimum Trade Size %
i.e. 10% safe, 5% Minimum Trade Size B = 1 + 0.1 + 0.05 = 1.15

AIM Next Sell Price = N / S
AIM Next Buy Price = N / B

I've wondered whether if you had a lump sum to invest and ran enough virtual AIM's, buying for real whenever any one indicated a buy trade, as more often there's something always down, whether that overall would work out better than lumping all in at one time. Generally each buy trade would be at a discount of 15% below that single lump sum time/date ... and repeated across x number of AIM's that's somewhat like having lumped in at a 15% total portfolio discount.

Over ten years if a stock gains 4%/year in price and pays a 4% dividend, then buying at a 15% discount = 5.7% annualised capital gain assuming mean reversion (7.2% if you sold at a 15% premium). And in buying at a 15% discount a 4% dividend rises to 4.7%. 11.9% annualised compared to 8% total gains if bought at a discount, sold at a premium across the ten years.

Providing the candidate stocks were wide/diverse enough, and you limited allocations to each actual stock to a modestly wide/diverse enough set, then there's no reason to expect the actual holdings to broadly deviate from that of the wider market average (but with the added benefit of potentially having bought at a discount, sold at a premium).

This for example sets up 30 AIM's on the Dow assuming a (virtual) $10,000 allocation each, $5000 initial stock value and shows the next buy price in each case given the most recent trade prices

https://uk.finance.yahoo.com/q/cp?s=^DJI	Price	PC	#S	N =	Buy 	Sell 
 American Express Company			94.29	5000	53.03	94.29	81.99	110.93 
 The Boeing Company				131.63	5000	37.99	131.63	114.46	154.86 
 Caterpillar Inc.				94.23	5000	53.06	94.23	81.94	110.86 
 Cisco Systems, Inc.				28.35	5000	176.37	28.35	24.65	33.35 
 Chevron Corporation				113.25	5000	44.15	113.25	98.48	133.24 
 E. I. du Pont de Nemours and Company		75.13	5000	66.55	75.13	65.33	88.39 
 The Walt Disney Company			95.03	5000	52.61	95.03	82.63	111.80 
 General Electric Company			25.78	5000	193.95	25.78	22.42	30.33 
 The Goldman Sachs Group, Inc.			195.45	5000	25.58	195.45	169.96	229.94 
 The Home Depot, Inc.				103.75	5000	48.19	103.75	90.22	122.06 
 International Business Machines Corporation	162.34	5000	30.80	162.34	141.17	190.99 
 Intel Corporation				37.55	5000	133.16	37.55	32.65	44.18 
 Johnson & Johnson				105.06	5000	47.59	105.06	91.36	123.60 
 JPMorgan Chase & Co.				62.55	5000	79.94	62.55	54.39	73.59 
 The Coca-Cola Company				42.96	5000	116.39	42.96	37.36	50.54 
 McDonald's Corp.				94.78	5000	52.75	94.78	82.42	111.51 
 3M Company					166.26	5000	30.07	166.26	144.57	195.60 
 Merck & Co. Inc.				57.78	5000	86.54	57.78	50.24	67.98 
 Microsoft Corporation				47.88	5000	104.43	47.88	41.63	56.33 
 Nike, Inc.					96.83	5000	51.64	96.83	84.20	113.92 
 Pfizer Inc.					31.65	5000	157.98	31.65	27.52	37.24 
 The Procter & Gamble Company			93.46	5000	53.50	93.46	81.27	109.95 
 AT&T, Inc.					34.17	5000	146.33	34.17	29.71	40.20 
 The Travelers Companies, Inc.			106.7	5000	46.86	106.70	92.78	125.53 
 UnitedHealth Group Incorporated		102.55	5000	48.76	102.55	89.17	120.65 
 United Technologies Corporation		117.24	5000	42.65	117.24	101.95	137.93 
 Visa Inc.					266.62	5000	18.75	266.62	231.84	313.67 
 Verizon Communications Inc.			47.86	5000	104.47	47.86	41.62	56.31 
 Wal-Mart Stores Inc.				86.91	5000	57.53	86.91	75.57	102.25 
 Exxon Mobil Corporation			93.21	5000	53.64	93.21	81.05	109.66