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Strategies & Market Trends : Value Line Investment Survey
VALU 37.30+2.2%Nov 7 9:30 AM EST

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To: KevRupert who wrote (60)11/3/2000 8:24:45 PM
From: OldAIMGuy  Read Replies (1) of 219
 
Hi A, I guess you could say that AIM's the Buy And Hold investor's way of trading. Or maybe it's the Trader's way of being a long term investor! :-)

It somehow fits in between buy and hold and shorter term full trading. It only sells off a small portion of one's holding in a rising market and then uses that cash raised to buy back shares at a deep discount to previous sells at a later point in time.

In AIM's algorithm there's nothing that has one sell all the way out of a position. That has to be decided by the individual. However, AIM can and does periodically become fully invested with no cash reserve held back. So, for owning a stock with a very bright future for the long term, AIM will keep you partially invested no matter if the price rises 100 X or even 1MM X. You'll always have at least as much money at risk as you started.

Should you be lucky enough to have a stock price cycle several times during the course of its long term rise to full potential, then you will have had several opportunities to have "recycled" your cash into that investment for further gains.

Probably the best thing to do is to read Mr. Lichello's book. It is pretty good indoctrination as to how the algorithm works.

AIM works off the Supply/Demand equation. It sells shares when there's high demand and buys shares when there's an over-supply. This tends to keep us on the right side of the equation!

Please don't hesitate to ask questions. I'll be happy to field them as best I can.

Best regards, Tom
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