Replies to post #40087 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi Clive, A filtering method I used for many years worked well during the Tech Stock era. It could also be applied to individual stocks in any other business sector. The idea was to look for good growth with good quality. My attempt was to hunt for the best potential for AIM in a sector using Value Line's traditional reports.

http://web.archive.org/web/20120609071221id_/http://www.aim-users.com/vlis.htm

If I could amend the page still, I would add that very LOW Beta stocks could also work well with AIM and might move contrary to the markets' moves. A mix of very high and very low BETA stocks could work well. Looking at the average 52 Week High/Low Ratio was a good indicator of potential AIM activity. Coupled with strong financials, etc, one should be able to select the best long term stock from each major business sector identified.

Hope this old stuff is still helpful!

[karw]

The CiS system (Cash is Stock) will take care of some of the money management issues automatically. The buying will continue to deeper drawdown levels, these days a transaction cost 50 cents, so using Lichello's one percent rule, the minimum transaction size is 50 dollar/ponds/euros, so really deep drawdowns.

Another advantage is psychological: the buying is more confident, without the fear of crossing the no-cash line.

Also using 'growing' stocks for a 'cheap' price with nice earnings will help.

Best,K

PS. Today installing my solar panels, which will return 15% per year. Payback 6-7 years. That is a nice investment.

[Toofuzzy]

The problem with individual stocks Clive is that AIM not only magnifies the losses, but it reduces the gains of something like biotech that only goes up for a long time.

So you are throwing more money at a stock that goes out of business and selling the one doing the best. Yes you can do well with the ones that drop and recover or bounce up and down like STKL.

I would rather trade BIB than an individual biotech.

Toofuzzy