Hi Neil, Re: Time or Price based AIMing.....
At my own Equity Warehouse we have both a purchasing and sales department. They are not run by the same rules.
With AIM's structure (not LD-AIM) it is impossible to completely sell out of an AIM holding no matter how high the price rises. One always holds a value of shares that is related to Portfolio Control even if the price ascent goes on straight line for decades. (don't we wish!!!)
This isn't true for our Cash Reserves. They are finite. Even after a massive bull market we will still only have $XXXX.xx of cash available for purchasing.
So, cash is finite and equity to sell is infinite. It is exactly this reason that our sales dept. operates differently than our purchasing dept. I restrain the purchasing dept to conserve cash while I never hold the sales dept back from taking profits out of a frothy market. If I have 17 sequential sells in 17 days in the same AIM account I won't go to the sales dept and complain.
Purchasing, on the other hand, is restrained. Sequential buys require both time and discount from the previous price to occur before I let Purchasing repeat a buy. I reset the clock and the discount after each purchase. If there's a sale in between two buys, then there's no restriction. A sale resets the clock and discount to AIM standard. It's sequential buys that concern the Board of Directors here at VIEW.
Best regards, Tom
Port Washington, WI 53074
AI
