Hi Dik, you wrote,Options is probably not what you want to go for if you have chosen the 'ease' of AIM, at least I don't.
What Tom Veale (Aim guy) did not say about options, is that he has sold them, a very different risk, than buying them.
AIM itself is a good method to increase profit, but not really a method to reduce risk. The highest risk around is that your stock goes down and down and doesn't come back anymore. AIM followed to the heart means that one continues buying that stock, i.e. Increasing the loss!
This is the risk you take with any single stock, no mater how you invest in it. Mr. Lichello says one of the strong points of AIM is that You decide before buying a stock how much you are willing to risk in that single stock. Yes after many years of Aiming a stock, you could end up putting many thousands of dollars in a stock that has bit the dust. But what you have lost out of your own pocket will only be what you put in it many years before. The rest will be the markets money.
If you only have a small amount of money, I would say stay with mutual funds until your portfolio is large enough to support investing in single stocks.
Maybe Tom can tell us how big our portfolio needs to be before going into single stocks.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
