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OldAIMGuy

03/19/09 1:22 PM

#29578 RE: investor5001 #29577

Hi I, Re: v-Wave.....................

It can be used a lot of ways, but the intent isn't to over-ride what AIM tells you. AIM's the boss, the v-Wave's just the consultant.

Should you have MORE cash than the v-Wave, then you might want to consider postponing a sale (or use a "vealie"). If you have LESS cash, then a sale would be most appropriate.

So, it's a guidepost, and isn't meant to eliminate the AIM math by any means. Think of it as a "Speed Limit" sign. It doesn't mean we can't drive faster than that, but the risks are higher. It also doesn't mean we can't drive slower than that.

I don't make changes to my Equity/Cash ratio based upon the v-Wave. I might use it to help determine the starting cash level of a new investment and then to confirm AIM's activities along the way.

For instance, we might see a bear market come along and eventually reduce our cash reserves to zero doing AIM buying. The v-Wave might be calling for a higher level of cash than we currently have. I won't sell to raise cash because of the v-Wave. It doesn't know anything about my costs, where AIM does. AIM will let me know when it's a profitably rational time to be selling off my first shares.

Maybe some others here will tell a bit about how they use the v-Wave as an adjunct to their AIM activities.

I still look for a discount between sequential buys as well as a delay of 30 days. That doesn't really have anything to do with the v-Wave, however. That's just part of my M.O. I've developed over the years.

Hope this helps,
Tom
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Toofuzzy

03/19/09 2:24 PM

#29580 RE: investor5001 #29577

Hi investor5001

I see Tom already gave an answer but I will try to simplify it.

The Vwave (and the Idiot wave before it) was developed to give a STARTING cash percentage for a NEW AIM account. It was NOT designed to manage your cash level (AIM does that). It can be a guide though at the extremes. If the Vwave is below 20% it might be a good time to start new accounts IF YOU HAVE LOTS OF NEW CASH. Conversely if the Vwave is at 80% it would be a horrible time not to take an AIM directed sale or start a new account no matter how much cash you had.

Toofuzzy