Hi Daisy.
With Low Down A.I.M., is there any advice about how to decide how many buy and sell transactions to allow for?.
The only 'advice' I can provide is based on my own experience with it.
In 2003 when I started with LD-AIM, I tended to set 3 Sells, but found out that I was selling out very quick and often.
So I evolved to setting up new programs with 5 Sells. This allows for a big rise from intial price to final sell price (depending on your Safe and Minimum settings). Once I made that change, I've not sold out of many programs. Some like SNDK, MU, STX, NVDA have been active programs in my protfolio for most of 10 years.
As for Buys, I've always used a common cash reserve for all of my programs so never set any. This gets me in trouble running out of cash fairly often, so I can't really recommend that you do it this way.
The numbers in the published sample spreadsheet are 4 sell and 3 buy. It seems to make a big difference to the $ Allocated and hence the Capital at Risk and Cash Reserve if you change these numbers.
That's why the download spreadsheet is so handy I think. It allows you to do some 'what-if' scenarios and arrive at some comfort level. You may even want to tailor the initial settings depending on how confident you are in the security you're going to buy. Lots of options there and more opinions that that!
Hope this helps.
Best Regards, Steve (The Grabber)
AI
