A.I.M Users Group Bulletin Board Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: budweeder who wrote (14086)	12/26/2000 3:08:41 PM
From: budweeder	Read Replies (1) of 18928

This is a FWIW post....this drawdown has been a learning experience for this new AIMer...perhaps others have learned some things too.... The Fidelity OTC fund started in April with 33% cash reserve (this fund mirrors the NAZ, rather than the NDX) had cash remaining up until today....AIM called for the last to be spent, which it will be at the market close. The RYVYX fund (2X NDX), started at the same time with the same cash reserve, ran out of cash in late October, and would need to go up 100% (50% rise on the NDX) in order to reach a sell level. So what did I learn? I am pleased that AIM directed a rational buying pattern on the OTC fund that purchased some good quantities of stock, even after a substantial drawdown....33% cash reserve is probably a good choice for this type of fund, so I can pull vealies when the cash gets back to the 33% level. The leveraging of the Rydex Dynamic funds is too "hot" for a 33% cash reserves during good times.....So my learning would say that I need to get at least 50% cash reserve before pulling vealies. In the meantime, there are only two accounts left with some cash.....so I can play a bit more in those accounts, but must sit and wait for a recovery on the others.... Forgive me if this post was too mundane....but it seems to me that part of the ideal AIM strategy is to just spend your last nickel as the market puts in a bottom...I obviously greatly underestimated the reserve needed for a leveraged fund in what are fairly bad times. Regards, Bud

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next