When you get another buy order, you buy another stock. This not only creates more diversification and thus lower risks, but also simplifies tax recordkeeping as each stock has only one cost lot.
True enough, though I'd think that you'd end up with a bunch of small holdings that way. For instance, if you have a $10,000 position and AIM recommends a 10% buy, that's only going to be $1,000 invested into the new stock. Follow that reasoning and your $1,000 position would recommend a purchase of $100 on its next recommended buy! While you could follow such with a brokerage service like FolioFN, that doesn't charge on a per-commission basis or minimum size, I don't think this idea would work very well elsewhere. You might need to work up to a $100,000 or larger holding for this to work effectively.
Best,
AIMster
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