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lrp42

08/10/08 8:13 PM

#28097 RE: wim #28096

Hi Wim,

Welcome to AIM.

I really don't know how to respond, mainly because I don't understand anything about puts and strike prices. That subject is way above my pay grade:-). You are much further advanced in investing than I am.

I was responding to Toofuzzy's remarks when he said:

"If you PRETENDED you had an energy AIM account but didn't buy anything as the fund you picked went down you could let AIM buy in. If it went up you wouldn't have lost anything since I am assuming you don't have the funds to fully invest in a new AIM account at the moment."

My thoughts went something like this: Suppose I felt that stocks in the Energy sector were too highly priced at the moment, but I wanted to eventually buy into the Energy sector when the price got cheaper. I could just set up an AIM account and instead of actually buying shares in an Energy ETF, I would just pretend that I did make a purchase. Instead I would use 'Virtual' shares in my AIM program until I actually bought shares as the price fell.

Therefore, as the price fell, I would purchase actual shares as directed by the AIM formula based upon a program initially funded with Virtual shares.

With respect to sell transactions I really haven't given that any thought, because I wouldn't have purchased any "overpriced" shares in the first place (based upon my evaluation of the energy sector).

I don't know if this helps explain my response to Toofuzzy.

Best regards,

Ray