Hi RtS,
The man who invented Automatic Investment Management, the late Robert Lichello, has published several editions of his magnum opus. Do not let its unfortunate title, "How to Make $1 Million in the Stock Market Automatically," put you off.
I believe a 4th edition just appeared, including his revised thinking shaped by the 1990s bull market. Veteran AIMers on the SI and Investors Hub sites debate whether his latest revisions are appropriate for the current environment, but these have mostly to do with the initial allocation of cash vs equity to begin an AIM program.
However, the 3rd edition, which I have, explain all you need to know to evaluate and begin.
The threads mentioned above are excellent. And check out Tom Veale's excellent AIM site at aim-users.com
There are also several simple software packages that make it easy to keep track of the process. Otherwise, it's simple enough with pencil and paper or a spreadsheet program.
I have come to believe that AIM is perfect for semi-equips, with their short-term volatility and long-term growth. As I may have mentioned, it serves me well because despite a record of picking good companies and even good entry points, I have not been as effective at SELLING, which is of course, the key to this game. AIM makes me take profits and generally keeps more or less even exposure to equity risk in dollar terms.
One other salient point comes to mind, CASH is a big part of an AIM account, in that acts as a store of value, building up in good times and depleting in bad. This works opposite to the "professional market" of fund managers and many news letter and media commentators. For example, I've had 2-4 sales in each of my MKSI, KLIC, ATMI and ASYT accounts since the Sept. lows. With the recent weakness, I've begun to buy again and expect more to come.
Hope that helps and happy studying.
Best rgds,
Jonathan |
