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Toofuzzy

03/06/08 12:44 PM

#994 RE: radioman #993

Hi Radioman

AIM is Automatic Investment Management. It is a way of REACTING to a securities (stock, mutual fund, CEF, or ETF) price movement instead of ATEMPTING to predict it. It is the opposite of momentum investing in that you buy MORE as something goes down and SELL some as something goes up. I concider it ZEN investing.

When you make a purchase you know in advance the price you will buy and sell at. If you make a trade you know at what price you are willing to either buy and sell at. It takes dicipline but takes the EMOTION out of investing.

You decided in advance of buying a new security how much you are willing to invest and yes be willing to lose if it goes to zero! Typically you BUY 1/2 of what you are willing to invest to allow for more purchases if the security goes down before it goes up. You have to be willing to invest that other 1/2 if a security goes down. To avoid the risk of individual stocks going to zero funds avoid this one risk that I concider inheret to AIMing.

for more info check out

http://investorshub.advfn.com/boards/board.asp?board_id=949

www.aim-users.com

and buy the relatively inexpensive book

How to make a $1,000,000 automaticly.

Not always
Toofuzzy