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Re: was Steve post# 31006

Friday, 09/16/2005 9:13:09 AM

Friday, September 16, 2005 9:13:09 AM

Post# of 37180
Hi Steve, Re: Low Volatility..........
AIM's not really time based. One can review the position as often as deemed worthy. However, the math involved in the construct usually is an inhibition to more frequent trades.

"By the book" AIM requires about a 30% gain from a buy to a sell. That's inhibition enough to bring trading to nearly a halt! The profits are nice when you get the trade done, but there's not many of them.

Many AIMers choose to shrink the size of the Hold Zone where no trades occur. Some us only a 20% LIFO gain between a buy and a sell. Some even less. Much depends upon the size of the account, the vehicle used as equity and whether the holding's in a Retirement or Taxable account. In a taxable account, short term gains are somewhat painful compared to an IRA.

Hope this helps,
Tom




Port Washington, WI 53074

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