A.I.M. In Depth Q and A

[AIMster]

Some of my mutual funds have been rapidly declining lately. I have been following newports recommendations and have found this is depleting my cash reserves rather quickly. It sounds like time to fatten up your BUY Resistance (SAFE). You'll want to be able to continue to buy all the way to a market bottom, in theory, and THEN run out of cash!

I've been experimenting with Toofuzzy's idea of late and that seems to be a good way to extend the cash reserve. Simple enough, it is to increase the Buy SAFE value by 5% at each purchase, with it being reset to the starting value (typically 5 or 10%) at the next Sell and then re-increasing it each time with subsequent purchases. In other words always reset it when you sell, but increase each time you buy.

AIMster