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Re: None

Saturday, 06/18/2005 1:23:05 AM

Saturday, June 18, 2005 1:23:05 AM

Post# of 48325
Minimum buy amount.
A few posts mentioned about the problems with the minimum buy of 5% on a $10,000 account being too small at only $500.
As I am using Automatic Investor it does let me use a % amount for the sell side and a fixed value (I use $800) for the buy side.
THis flexibility is very useful and shows why it is sometimes better to buy some software than to try and calculate things with a spreadsheet.

As still a relative newcomer to AIM and finding that most people are AIMing ETF's which aren't available here. Did people have a problem with individual stocks.
I know about the deep diving pain from MRL.AX which would have looked a heap better if it had been LD-AIMed rather than regular AIMed.
I'm wondering if the risk can be lessened by LD-AIMing 20+ highly volatile stocks with a max risk of 2.5k per stock and then using the investment pyramid methodology of then moving profits from them into regular AIM in dividend paying blue chips.
I must admit I almost like looking for the most horrendous looking stock charts of small 20c mining stocks that move up to a $1 then down to 10c and back to 50c all because I know I have defined my risk beforehand.
I set very wide bands for SAFE of 20% on both sides as those are realistic for stocks that move 100% in the course of year.
What we have is a great opportunity to be a volatility harvester taking high risk stocks and lessening the risk by diversification and LD-AIM.

Cheers

Neil

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