A.I.M. Users Bulletin Board

[SFSecurity]

Hi Toofuzzy, I was thinking some more about your question and reflecting on my history with gambling. Yeah, I've spent a bit in Las Vegas, probably under $100 over the last 50 or so years. $200 on that pump and dump stock trade I mentioned - If I recall correctly I lost about $175 or so with it. Occasionally I play bingo, never made much but never spent much.

The last time I was in Vegas I actually won $15.40!! Whoopee!!! But I had to give it to my girlfriend as she fronted the money and asked me to play. Oh, well.

But, back to gambling in the market. I ran EMMD again over the last three months based on $1,000 total, 50% cash, 10% buy safe, 0% sell safe, 10% minimum stock trade and $350 minimum trade size. A mere 398% gain after commissions.

I love having commissions calculated right along with the trades!

Volatility is King with AIM and something like EMMD has got it up the wazoo. A thousand dollars in, 500 cash and the cash, as of today, would be $3775 along with 4216 shares.

Of course I would not expect the actual return would be this good as the spreadsheet assumes that you get the sales at the price it sees.

BTW, I'm calculating actual buys and sells a bit differently these days. What I do is go from today's closing price and run down the spreadsheet in pennies, nickels, or dimes and see where the spreadsheet says the next action should be.

The online calculator says:

@ Stock Value Above $1359 
 Min Sell Order Size $136 
 Min Sell Price $0.32 
 Min # Shares Sell 421.6 
 

but that does not match what I get from the spreadsheet because the minimum sell order size is only about a third of what I use for looking at this. Even though TDAmeritrade commission is only $6.95, that's ~5% but at $350 trade size it is a tiny bit less than 2%. Any trade size less than $300 and you run out of cash. True, a $300 minimum trade size can be more profitable, 549%, but, again, this assumes you actually get the trade you post. Another point is that a $300 trade size gets a sale at $0.60 instead of $0.65 for $350 minimum.

The various variables that one can chose make setting up a position tricky at times.

Anyway, back to gambling. Assuming you lost the entire $1,000 in gambling on EMMD, would it make any significant difference to your total income? Not really for me, nevertheless I'm not much of a gambler so I've only played with paper trading it.

Best,

Allen