Replies to post #6743 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Hi Bernie: RE LD AIM

you wrote
>>>>>>Let's pretend we find another Microsoft or Intel in its infancy. We set your LD-AIM at 5 purchases and five sales. The stock goes up and we sell five times. Finally we have nothing left but our virtual shares. <<<<<<<

The assumption you make is that you will get five sales without a buy signal. While I assume it is possible, it is probably unlikely.

Once you have a few buys and sells the issue is less relevent.

If you have enough money to buy 1000 shares of 10 individual stocks there is probably no reason to use LD AIM, but if you only have $3,000 you want to invest in a $30 stock this year and maybe invest $3,000 next year, LD AIM will allow your AIM directed trades to be aproximately three times as large. Instead of having buy and sell signals of $150 they would be aproximately $450 starting out.

Toofuzzy

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

[The Grabber]

Hi Bernie:

I wasn't insulted. I know where your heart is. I always 'leave my ego at the door'.

That aside, I can't really disagree with anything you've said, but I think it is unlikely to get 5 consecutive sells or 5 consecutive buys. Remember, Low Down AIM is a place to inexpensively start a new program (and maybe a way to rescue an old, inactive program). All of the 'rules' apply with Portfolio Control setting being the exception.

I need a little more time to craft the rest of my response point by point, but we'll leave that for now.

I do want to say that I really do appreciate the 'critical eye' you've been providing the last few days. It's invigorating to me, and the kind of reasoned debate that is sometimes lacking on this board.

Regards, Steve