A.I.M. Users Bulletin Board

[Adam]

Ideas for a high risk market:

In this "high risk" AIM market I don't want to start large positions, but at the same time I want to gain from market rise. Thus I plan to turn to an LD-AIM and EZM on steroids, where I buy just enough for one sell. If the market goes up I may get one sell, and if it drops I'll develop a full position on market drop with further buys.

Also my thinking is to use larger minimum trades. Instead of my usual 2.5K quanta use 3.5-4K or so with only one initial buy. Thus starting a position with only 3.5-4K would be the equivalent of a regular AIM program of 35-40K with 10% minumum trades. Yet my initial investment at risk is small, and if the market drops I can quadruple my position as the stock drops and still maintain a reasonable size program. This was inspired my a rule of Cramer, who advises to start with one fourth position intially and accumulate more as the stock drops.

Furthermore using larger trade quanta decreases paperwork and commission overhead.

Adam