Replies to post #40605 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Hi SF

Aim has you sell the same % of shares with each consecutive sale. Since every time you have a sale, you have less shares, the # of shares you sell the next time will be less.

So if you have 1000 shares and sell 100, you then have 900 shares and your next sale will be 90. You then have 810 shares and next sale is 81 shares. I used 10% just for the example.

The dollar amount I think remains almost the same, but doesnt really matter. The dollar amount you continue to own remains the same unless you have a buy somewhere along the way.

Toofuzzy

[OldAIMGuy]

Hi Allen, Re: AIM trades and order size............

In my case, each sequential sale is sized the same in dollar value. (percent of Portfolio Control) However, that is the "minimum" trade size at the target price. Should the price/share overshoot my target, then AIM and I would size the order appropriately larger.

I look at the equity side of AIM as being inexhaustible where the cash is finite. Further, since I generally build in sort of a bias for accumulation of shares, I like to take any selling opportunity I can - even if it is just a minimum dollar and share order. That helps to keep the cash register full of greenbacks.

The finite cash reserve can be exhausted in a sharp downturn or in a protracted downturn. I therefore tend to set up AIM rules to conserve cash. The use of a percent of the Portfolio Control as a minimum dollar amount keeps the order size growing on the Buy side. This slightly increases the discount needed in sequential buying. The deeper the discount, the bigger the next bite.

Best regards,
PS: Thanks Toof for the reply to Allen's question.