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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: Steve Grabczyk who wrote (8486)	9/10/1999 10:53:00 AM
From: OldAIMGuy	of 18928

Hi Steve, There's a couple of things to remember when working inside an IRA. First is there's not tax consequence from trading. Therefore you don't need to account for Uncle Sam's cut on each trade. This allows you to work AIM with a smaller "Hold Zone" than you would in a taxable account. It's just you and the broker sharing the proceeds. So, if in a taxable account you were using 10% SAFE on both the buy and sell sides, you could get away with a lower SAFE level in the IRA and maybe get more trades and possibly more profits. We've discussed here before how the total return curve of an AIM account tends to flatten out with more trades at less profits. Starting with + or- 10% will generate one total return and shrinking these values will usually generate more trades and therefore more total return. However it has a point of diminishing returns the further you go. Second is that a LOSS in an IRA is just that - A LOSS! There's no tax advantage to losses offsetting gains as in a taxable account. So DON'T LOSE MONEY!!! :-) Quality is still important here! Those of us that have tried the souped up index fund UOPIX are doing very well with it and haven't had to spend a second on stock selection yet! Take a look at that as a potential. Plenty of room for trading and lots of fun. You'll be buying a piece of the top 100 NASDAQ stocks. I've updated the Idiot Wave report for the week and put the info at: execpc.com I've also updated the UOPIX example at the site as well: execpc.com Best regards, Tom

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