Replies to post #6393 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Hi LH: Reguarding halfway to the wall:

>>I think to succeed with half way to wall one must implement the concept on the 1st buy and fill the bucket as AIM wants on the last buy. I think most put the idea in place when they are strapped for cash at the bottom and then it's way to late. To me that idea only profits if some where down the ladder you satisfy AIM completely. I've done that in a few cases and came out with positive sales. FWIW<<<<

Well with the method above you would need 20-20 forsite. How do you know when the last buy will be? The whole point of AIM is to invest without (or less) emotion. How would you know to use your cash for that last buy. How would you know that first buy will not be your last till you have a few more sells (ie you are limiting your purchase on that first buy and there may not be a second before you have a sell)

The purpose of the "Halfway to the wall" is to save a little powder to buy at the very bottom of the market when you have a deep diver.

What you propose would be like using a "Vellie" as your first sale and not building up the cash reserve because you want to be able to save the shares to sell at a higher price.

In case anyone doesn't know what we are talking about. When AIM wants you to buy enough stock that it will use up all your remaining cash, only buy stock with 1/2 of your remaining cash.The next month if you have ANOTHER buy signal, again use only 1/2 of your remaining cash. This concept was nicknamed "halfway to the wall" and is NOT part of the "regular" AIM formular.

Just my thoughts
Toofuzzy

Take the road less traveled. It will make all the difference.

[husk]

re: your first sentence in the second paragraph.........therein lies the condunrum regarding AIM buys or any dollar cost averaging technique, doesn't it?

.....let AIM fill the bucket on the "LAST" buy.....just how does one know in a falling market that "this" is the last buy?

The filling the bucket, as the market declined in '01 &'02 is precisely why most ran out of cash early, imo.....

Using the halfway to the wall concept is one approach...another is to increase SAFE to slow the depletion of cash...I would rather be able to buy a smaller amount at a lower price, if the decline continues, than to be tapped out.

referring back to your message, IF we could know it was the last buy called for by AIM.....we could indeed load the buckets, pails, washtubs, and even the bathtub at those prices and get rich.

regards.

[OldAIMGuy]

Hi Keith, RE: ADCT remaining in the N-100.

Saved by the Bell! I figured its market cap had dwindled enough to put it off the chart of the 100 largest in the Composite.

It should provide some sponsorship that might have otherwise evaporated.

RE: half way to the wall. If there's no delay between purchases, this really doesn't offer much of an advantage either. It's asking us to spend only half of the remaining cash if AIM's asking for a larger purchase than that. However, if we're buying three times a day, this isn't going to be of much benefit.
:-)

Best regards, Tom