A.I.M. "In Depth" Q&A

[OldAIMGuy]

Hi Liam, Re: What to do when removing CASH only from one AIM account or holding.......

The simple answer is "Nothing." There is no direct effect on the AIM engine's internals. It only means there will be less cash in the near future if the markets turn downward.

If you are leaving the AIM account with a significant shortfall of cash you might want to shift some of the SAFE emphasis to the Buy side to slow down any initial buys for a deeper discount. If you had SAFE as 10% for buying and selling, you could shift 5% to the Buy side (or even all of it) so that your initial buy would be below where it is currently. That might help to preserve the cash a bit longer should the markets turn ugly before you sell again.

Doing this also makes the "next sell" target closer, so you'd start to recover cash more quickly if the markets continue upward. The "Lichello Band" or hold zone would remain essentially the same mathematical amount, but would shift toward a Sell bias a bit.

Hope this helps.