A.I.M. Users Bulletin Board

[ls7550]

Question about Vealie. I did a Vealie on AMZN and afterwards there was still a residual sell. Do you execute that sell or increase to Vielie to remove the residual sell?

My thinking was that the purpose of the Vealie was to stop a sell, so I increased the PC such that there was no longer a residual sell.

Remember that Robert Lichello suggested using quarterly or monthly reviews. Time allows current trends to continue further without jumping in (out) too soon. Equally however you might miss a peak/reversal (or bottom/reversal) that occurs during the interim.

With AIM HI Lichello suggested expanding minimum trade size up to 10% of stock value saying something like 5% generated too much trading intensity.

If when you review there's a Vealie then update your records (increase PC by half the indicated trade size amount, without actually selling any shares) and you're done until the next review date. Residual trades that might flag immediately after having updated your AIM aren't a flaw, they're a feature that helps slow things down.

With monthly or even quarterly reviews and 10% minimum trade size you'll also find that the risk of exhausting cash in downtrends is reduced. You'll also trade larger amounts less often, that saves on trade costs. Monthly reviews will also steer you clear of 'short term trading' (30 day) rules (taxed differently - at least in the UK (i.e. less tax reporting complications)).