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OldAIMGuy

07/14/02 11:03 AM

#3921 RE: nmheifer #3914

Hi NM, Welcome to the AIM BB.

Sometimes it's not the stocks that are going UP that make the best AIM stocks long term. If they're way UP, then maybe they're due for a rest. Sometimes way DOWN is a better place to bargain hunt. But remember we're looking for quality and survivability as much as other things.

I have some stocks that are currently profitable and have been selling recently. PRX and BSX come to mind. Maybe you should search out stocks with an "X" in the ticker! <ggg>


For individual stocks, Mr. Lichello suggested $10,000 as a reasonable amount for a starting account. That could be divided between the Equity and Cash sides.

I think your problem in finding stocks that might be trending upward is more symptomatic of the MARKET than of the STOCKS. Remember that you are buying into a Company, not just a chart pattern.

Here's the page on AIM stock selection that I prepared. This may help.
http://www.aim-users.com/vlis.htm
And also, there's the PIC list
http://www.investorshub.com/boards/board.asp?board_id=1010
Hope this helps a bit.

Best regards, Tom

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lostcowboy

07/14/02 5:39 PM

#3923 RE: nmheifer #3914

Hi nmheifer, welcome to Investorshub, and welcome to the AIM user's board. I see that this is your first message.
Being that I don't know how much you know about AIM or the market, I will explain as simply as I can. AIM is a long term investing method, not a short term one. Right now (short term) you should be seeing your aim system generating buy orders. The reason for this is that we are in a down market or(bear market), around 80 percent of the stocks on the exchange lose equity value. Note you should be able to find 10 to 20 percent that are going up!
In the 1970's about 90 percent of the stock market books were about short term stock market systems. In the 1990's 90 percent were about short term stock picking systems. Most of the people that followed them ended up selling their stock at the wrong time (buy high, sell low). The reason they did this was due to psychological pressure, if you see your nest egg shrunk by 50% you would want to get out of the market too. But what if you had a defensive tactic, You may be able to withstand the pressure, and hold out until your stock recovers.
Types of defensive tactic's
Short Term:
Buy a put option on your stock.
Sell stock short,and buy back at lower price.

Long Term:
Buy a long term put (leap) option on your stock, if able to do so.
Have a large cash reserve, that you can use to average down with in your stock.
AIM, uses the averaging down tactic. If you start a AIM program with 50% stock and 50% cash Your stock can lose 50% of the starting price before all the cash will be invested in the stock. A 66%/33% should last a 30%drop, and a 80%/20% should last a 20% drop. You can use this to help you pick your stocks.
Look at your stock's history, from the last bull market to the last bear market how much did it drop? match that up with the stock/cash ratio's to use.
Mr. Lichello did not get into stock selection to much, he just said pick stocks that you know will still be there when the dust clear's! He recommended mutual funds and Blue chip stocks that pay dividends.

All the examples in Mr. Lichello's book show you starting out at $10,000. However he did not have the tax advantage of IRA's, If you have money in a IRA, and you are using a mutual fund and a money market fund. I think you could get away with starting a AIM program with $5,000.
Note: if you do not have $5,000 yet I recommend going here http://www.investorshub.com/boards/board.asp?board_id=966 To look at other ways to invest. Note: that's my board.

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lifo

07/14/02 6:34 PM

#3925 RE: nmheifer #3914

Hello nm, I did show a profit AIMing stocks over the past 12 months. Only one of my AIM accounts with an individual stock is currently in the red. AIM has worked well for me with stocks. Here are a few stocks that I made money AIMing: ATYT, NCX, T.CTR.a. Of these three, I am still AIMing T.CTR.a.

I have had my share of deep divers as well, and handled them the way I felt was right for me.

What stocks are you AIMing?

Regards,
Jack