Replies to post #4081 on A.I.M. Users Bulletin Board (AIMUSERS)

[extelecom]

Charlie, Nitelord, Glad to see you guys contributing here...
There is no magic bullet and Lichello certainly did not perfect the ultimate answer. One advantage that AIM has is the control of one's emotions.
Have a great weekend....

ET

[extelecom]

Charlie, I did a search for "risk" on the AIM Q&A board and maybe this will help some:
http://www.investorshub.com/boards/read_msg.asp?message_id=290692

You might try and do a search on this board for risk as I remember there being a pretty large discussion of risk here on this board also.. The search function on IHUB works very good. You could try and search the AIM board on Si, but I have had trouble recently getting that to work...

ET

[karw]

Charlie,

When a stock goes up B&H is hard to beat, actually unbeatable.

When the stock goes down, AIM shows its strength.

It is maybe worthwhile to study a stock that goes down straight after the first buy and then recovers somewhat and does some oscillating etc. By AIMing you get more and more shares and suddenly you have much more shares as B&H.

I looked at my own stocks and saw this behaviour.

Hope this helps, K

[Bernie Goldberg]

Hi,
Try PG. Make your first purchase at its all time high of 109.56. Follow Mr. L's instructions and update monthly.
Let me know what you think of AIM compared to B&H
Bernie

[Conrad]

Hello Charlie. Risk never addressed?

I do not think that your assessement on this correct. It appears to me that risk minimization is an important feature on this Board. Maybe you are right that we do not dive into it in detail but this risk issue often addressed here.

The fact that we are AIMers is to a large extend due to the fact that you reduce risk substantialy by the AIM method, except if one keeps on buying on deep divers that dive because they are going down to zero.

If you consider that most stocks are not deep divers then with the AIM you can do very well, except the AIM BTB does less well than the fired-up AIMs.

As to the difficulty of looking forward, that's simply a problem we have not solved yet...we are waiting for the next Einstein te be born.

The way to tackle it is to be full in stocks when the market is low priced and to be in cash as the market is at a high. That is risk minimization. If one is greedy at the top and starts buying on the hope the rise will continue then he is betting on how the future will unfold in his favour while the AIMer is betting that the future will unfold against him!

Conrad

[OldAIMGuy]

Hi Charlie, The ROCAR term (Return On Capital At Risk) is the measure that I use to get a feel of what benefit I derive from using AIM relative to Buy & Hold.

It gives us a sense of the risk adjusted return on the account by looking at the total return percentage relative to the average amount at risk for all the time.

It, too, is easy to add to a spreadsheet.

http://www.aim-users.com/diction.htm#q18

Best regards, Tom