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

[OldAIMGuy]

Hi B78, re: finding appropriate settings for an investment......

The very first question here ( http://investorshub.advfn.com/boards/read_msg.aspx?message_id=279368 ) addresses using Zig Zag from Stock Charts to help determine an appropriate Hold Zone size. Then you can divine the SAFE and Min. Trade Size from that.

Generally for diversified mutual funds I've used a total hold zone size of about 20%. For individual stocks I've used 25% up to about 40%.

If one decides 20% is effective, then using 10% total SAFE plus 5% for for each the buy and sell minimum values it would give you an approximate hold zone of 20% (10+5+5).

While the CGNX example doesn't work exactly with the recent trade history, you could plug in another stock or fund and try the same series of Zig Zag points to see if you could find the sweet spot.