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Re: Tim Reese post# 3705

Friday, 07/05/2002 2:10:07 PM

Friday, July 05, 2002 2:10:07 PM

Post# of 48403
Hi Tim:

With AIM you are not "Doubling down" and you do not have an unlimited amount at risk. But what you do have at risk IS.(at risk)

1)Pick a quality stock. (I have no idea how to do that!)Some on this board like to look for stocks with higher volitility(BETA)as it makes the trading faster.

2)Invest a modest percentage of your assets in any one stock.(so if you screw up #1 it is not the end of the world)

3)Decide how much money to devote to that stock.

4)leave 30-50% of what you want to invest in that stock in CASH as your starting point.(that way when you screw up #1 you have the cash to average down)

5)Follow the AIM formular (read the book)

6)keeping good records are important.

7)You are buying a stock that someone else thinks will go down.
They are right. Buy it anyway.(see #4above)


just a start
Toofuzzy


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