Hi Jack, Re: 30 Day Sequential Buy Delay................................
Over the years I've found that AIM likes discounts. It became apparent that once an AIM engine reaches a Buy threshold it becomes easier to continue buying after a purchase. Typically it requires less than a 3% additional discount to hit the "next buy" trigger for a minimum order size of 5% of position. This can have AIM burning all the cash buying shares in a very short time frame. If the bearish condition is an extended one, AIM will run out of cash well before the bottom.
So, I now set a clock for 30 days after a buy and (except for when I sin!) don't initiate a sequential buy until that clock times out. Sometimes I miss a second buy if the prices start to rise before 30 days have passed. Well, that's just the way it works sometimes. In a protracted bear market I want the cash to last as long as possible. So, the 30 Day Rule helps to conserve cash for a longer period. Many times there is a deeper discount after the clock runs down.
I cheated in March and bought more than once in 30 days. Discounts were too generous and were happening too quickly. Further, the MRI and v-Wave both said that market risk was evaporating at an incredible rate.
Further, if AIM buys shares and then turns around and sells some just a week later, the 30 Day clock is cancelled. It's only sequential buys that are affected by it.
AIM is interesting in that one can never run out of "shares" through selling, no matter how high the price/share goes. However, it can and does run out of cash. So, cash is the more precious commodity in the holding as it is finite. So, protecting it and using it with great frugality is important.
Best wishes,
OAG Tom |
