A.I.M. Users Bulletin Board

[Toofuzzy]

Hi Kencc

Forget the LD-AIM spreadsheet for a minute.

Lets say you were going to start an AIM program with $15,000 (a minimum as far as I am concerned because of order sizes)

$10,000 stock, $5,000 cash, 10% SAFE, 5% MIN Order SIZE

OK instead you want to use LD-AIM

What leverage do you want to use 2, 3, more? (more is not a good answer)

You sound conservative so lets start with 2

Make PORTFOLIO CONTROL $10,000 (only $5,000 stock)
Make CASH equal actual stock bought ($5000 cash)

So you have $5,000 left over from standard AIM, the starting cash is the same, you will be able to buy down to the same price.

With LD-AIM I would use 5% SAFE and 10% minimum order size. This is important. That keeps the next first trade the same but slows down consecutive trades a little.

Two more tweeks I am using are for conscutive trades.

Consecutive BUYS:
Increase SAFE 5% each time. (first BUY 5%SAFE, second 10% SAFE, third 15% SAFE) It spreads the buying out alittle.

Consecutive SELLS:
Sell, Sell, USE Vealie, Sell, USE Vealie, Sell, USE Vealie
Again to spread out the selling. If you run out of shares you could do a virtual trade to kind of hang on and keep the program going but at some point I would just pick an entry price to get back in (at the last buy point or below)

Now that you are not useing the spreadsheet you can take a calculator and see how many trades the above leverage (2 or 3) will allow you before you either run out of cash or shares. OR when you are done with that you can do it backwards and decide how many trades you want to be able to make and then figure out how much cash you would need to start.

This takes longer than the spreadsheet but you will probably understand it all better when you are done. You can then go back to using the spreadsheet with a better understanding of what it is telling you. But you don't ever need to because once you figure out how many buys and sells you want for the equivalent $15,000 AIM program you can scale the amount of stock and cash to have up or down depending on how much you actually want to start with.

Example:

If I know with LD-AIM I want
PC = $10000
Stock = $3,000
Cash = $3,000

then if I want PC to be $15,000 then
stock = $4,500 starting out and cash = $4,500
and all my trades will just be larger.

In general I like to keep the starting CASH the same as the starting ACTUAL stock because of the leverage.

I assume at this point that you know that once you set up LD-AIM there is absolutly no difference from regular AIM. You are using the VIRTUAL PC, SAFE, and MIN order exactly the same (except for my tweeks)

Hope this is clear enough
Toofuzzy