InvestorsHub Logo

ls7550

05/09/16 3:22 PM

#40665 RE: Toofuzzy #40664

in the later edition when Lichello suggested 80% stock and 20% cash to start, what was his suggestions for SAFE and MIN ORDER SIZE


Hi Toofuzzy. IME 80/20 is great as it broadly tracks 100%, with less risk http://tinyurl.com/jrwckmp

4th Edition page 262 (AIM HI chapter) : where SAFE is nothing more than 10% of your Stock Value

Robert also noted on that same page : For a while I experimented with a Minimum Market Order of 5% of my Stock Value--an amount, in other words, half of the Safe figure. My AIM machine, faced with a record bull market, went into overdrive, spitting out cash like a punch-drunk ATM machine......

... The cure took another year to develop and it's simply this: Make your minimum purchase or sale 10% of your Stock Value


Clive.

PS http://tinyurl.com/h4okdd2