A.I.M. Users Bulletin Board

[Neil Scott]

Hello Adam,

You should try my method if you are wary of those deep divers.
As I have mentioned before, instead of setting up an LD-AIM account using 50% or 33% of a standard account I just make an initial purchase of between $800 and $1000 of a stock on the assumption that I only have a 33% probability of it trending in the desired direction.

Why tie up $3000 in a stock that is going to go sideways or down.
I then set up Automatic Investor to give me buys based on a $10,000 account 40/60 cash/equity and 10% buy safe.

Ok, so if it goes up then your profit side is limited (I sell half the position if the price doubles) but preservation of capital comes before profit I believe.

I have found that I have had more stocks where I have had to make secondary and even 3rd purchases than I have had stocks trend anywhere near an 'official' sell point.
It makes you feel a little better when you make a second and third buy that you don't see as much red ink as you would with LD-AIM.

Regards

Neil