A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Steve, RE: long term commission costs
Your value of less than 1% average per transaction is in line with what I've experienced over the years. I kept very close track of this through the mid '90s, but lost interest as the commissions kept going down. Even back in the late '80s I was paying less than one percent on average.

I'm still using your idea of a percent of Portfolio Control value as my minimum trade dollar amount. The bear market benefit is that each purchase increases the PC value slightly. Each increase adds some "resistance" to buying. This has a cash conservation effect that seems to work out well over time.

I don't know if you had intended that when you first suggested it years ago. I think your main interest was in having your buy and sell orders being sized the same.

Best regards, Tom