LD-AIM revisited,
Long gap since I last posted and as I noticed a few posts on this subject I thought I'd aska few more questions.
I have been using A.I. for testing various LD-AIM scenarios where I will initially buy $800 of stock, if it falls, buy another $800 and once more if it falls again therefore having a total risk of $2400 total.
For parameters I have been using $10000 account with 40% cash. I have also been using 20% buy/Sell safe values, my reason for this is that there are many volatile low priced mining stocks here in Australia that you wouldn't want to AIM with a full account but LD-AIM would reduce risk.
If the stock initially rises you just have to sell out your original stake for a small profit, unless you want to hang on until the first buy arrives.
Who out there has a decent amount of LD-AIM stocks at the moment.
I'm interested in knowing if by spreading your money into many more stocks does it make a more efficient and profitable system that just using AIM.
One other parameter I'm thinking of adding is that of locking in profit on an LD_AIM once it moves into a positive cash situation. If you find you have cash of say $2000 as well as stock, ensure that you only spend a maximum of $2,400 on future buys therefore taking your max loss down to only $400. Keep ratcheting this up until you can extract funds to start up more accounts.
Is this how other LD-AIM fans out there are working?
Regards
Neil
AI
