A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi i-5001, Re: settings for Vista...............

Yes, different from the examples at the AIM Users web site with "Ultra Fund" from American Century, my suggestion is to use the full 10% SAFE when buying, but use zero SAFE when calculating your sales. This means there's more resistance to buying than selling.

Capping the selling using "vealies" or a maximum cash reserve percentage ends up being the "resistance" on the Sell side over time. Remember that with AIM, one can never run out of shares, but one can run out of cash.

There's a secondary effect if one lowers the Buy SAFE. It tends to have AIM buy again rather quickly with very little discount in price/share. So, it's been my M.O. since around 2000 that if I'm going to reduce the SAFE at all from the Lichello standard (10% Buy and 10% Sell) the reduction should come on the Sell side first. That way we don't mess with the "feedback loop" on the buy side.

Best regards, Tom