News Focus
News Focus
Followers 22
Posts 3737
Boards Moderated 1
Alias Born 01/30/2002

Re: Alton post# 31373

Tuesday, 01/26/2010 10:43:11 PM

Tuesday, January 26, 2010 10:43:11 PM

Post# of 48379
Hi Alton.

I've been sitting here reviewing charts and looking for alternatives other than AIM. As much as I would like to trade, I just can't determine a more stable and lower risk method than AIMing (business building over time).

Well there is always LD-AIM.

Lower Risk in that your capital at risk is lower for the same potential realized gain benefit than classic AIM.

Remember, if you go back through Lichello's original 10-8-5-4-5-8-10 cycles you will note that those original 500 shares are never sold (on a LIFO basis anyway).

So the question becomes, why buy it? That initial position serves as nothing more than a placeholder for the initial Portfolio Control value. Only actually buy shares you're likely to Sell on a 3-5 trade Sell trend, then let the other shares be virtual.

And for those that might note the trading versus investing aspect of LD-AIM (which will let you Sell Out); I have some LD-AIM programs that have been active for 7 years. Or they are very active and produce many profitable round trips and accumulate significant shares along the way.

For example:
AXAS (formerly ABP) started in October, 2005 with a 2:1 Virtual:Actual ratio. So my Capital at Risk going in was one third of what Classic AIM would have been.
I have had 20 subsequent Buys and 16 Sells.
I now own more than 11 times the initial Actual purchase.
The current price is about one half the initial purchase.

All FWIW.

Best Regards, Steve (The Grabber)

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today