Hi Keith, I'll have to think about just what sort of marker should be used for that point when we don't follow AIM's advice! Maybe a Donkey???
Yes, Several here have learned that AIM's "pump the brakes" feature with a falling stock sometimes gets us ahead of ourselves. It pays to let the dust settle a bit between buys. A sharp drop will trigger an AIM buy and just as soon as you enter it in the program, it turns around and says "Buy another 100 shares!!" Well, it should At Least be delayed until the following week in most cases, as usually we'll get a better price. If it turns and rises again, Don't worry, be happy!" At least you made the first buy.
For those who fiddle with a reduced SAFE value on the buy side, this is especially true. Since each of our buys jacks the Portfolio Control up another notch, it also makes it that much easier to buy again. Reduced SAFE is another way to rapidly deplete cash reserves if purchases are crowded together.
Hope this helps more than it hurts. Just when you thought that AIM was going to take all the thinking out of your investing, we've complicated life with all sorts of variables. When in doubt, drop back to Mr. Lichello's basics and punt!
Best regards, Tom
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