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Re: Qarel post# 9936

Wednesday, 10/01/2003 7:00:00 AM

Wednesday, October 01, 2003 7:00:00 AM

Post# of 47141
In any case, the stop loss in Reverse Scale is a protection measure, something that is lacking in AIM, apart from your own good sense.

Qarel,

Point taken, especially in these days of Enron, WorldCom, etc. I feel that this risk of AIM "scale trading" can be substantially reduced using Exchange-traded funds. It's less likely that a fund consisting of multiple companies can ever get to a $0 value the way a single company can. The worst that could happen here I think, would be like last year when Barclays closed their Internet ETF. Even then, though, one would have been paid something from the liquidation process.

Best,

Patrick




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