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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic
INTC 37.51-0.8%3:59 PM EST

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To: robert w fain who wrote (13734)12/1/1997 6:25:00 AM
From: Dr. Stoxx   of 27012
 
Hi Robert. AIM stands for "Automatic Investment Management", and was created by Robert Lichello back in the 1960's. It's been modified some since then, and has different versions, depending on whether the market is bullish or bearish.

Essentially, the strategy is to keep a strong position in a stock that a) has decent prospects for long-term appreciation (though this is not as essential as) b) and is volatile (beta of 1.4 or higher). The system tells you exactly when to sell a percentage of your shares (at highs) and to buy back in (at lows). Usually, one keeps around a 75% base invested (unless the stock really soars). A big part of the system is keeping some cash always on hand for the dips, which you then invest in something safe but accessible.

Buys and sells are triggered by price fluctuation, and the system is designed to become more and more conservative as price rises, and more and more aggressive as the price drops (usually the opposite of most investors). AIM takes all the guess work out. All you have to do is find stocks you'd like to stay with for at least a year...

There is a very good AIM thread on SI, with many helpful respondents who'd be happy to answer all your questions. But I'd start with the following link, where you can read about the system itself:

techstocks.com

Good luck, and happy trading, TC.
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