Replies to post #43236 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Good morning Karen, Re: What to do with Deep Divers.........

Something that I did after the 2008-09 panic was to institute what I call the "Black Swan Rule." If a position was out of cash and still begging for more buying, I ignored the advice. Further, I took the lowest price/share purchase (usually the last buy) and divided it by 0.80 to come up with a target Sell price for the first Sell in place of AIM's target. Usually this new target was lower than AIM's.

The idea is to capture some cash if the stock reverses and possibly sooner than AIM would. Then I would use that cash only if the price cycled back down to that former, last Buy price. This actually worked quite well in that the bottoming process sometimes takes longer than our patience. It gives us some trading $$$ to utilize while the market finishes consolidation.

In more recent times I've had this occur in Emerging Markets, for instance. Also in the energy sector.

Hope this helps on the AIM front. The rest of the decisions are a bit more philosophical. I agree it is difficult to initiate AIM with others less experienced in investing than we.