A.I.M. Users Bulletin Board

[AIMster]

Potential gains are obviously correlated to the risk entered into. But if one systematically can reduce risk without as much of an impact on the corresponding reward potential, then I say go for it.

The quest for the "efficient frontier." I'd think an AIM-based stop loss function would have to take into consideration a few items:

1) is the stock a real "dog" with no likely prospect for a price rebound anytime soon?

2) do I think I can get a better return on something else, despite whatever loss I incur if I cash this one out?

3) how much impact does this have on my overall portfolio, versus holding for some future price activity?

4) are there sufficient price swings such that converting this from AIM to constant value would still let me make profit on it by trading the LIFO shares until the overall uptrend resumes?

5) what combination of loss percentage and/or time held at that loss percentage is enough for me to consider cashing out?

Probably even more than these - but these are the ones that jump off the top of the head first.

Best,

AIMster