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

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To: Steve Grabczyk who wrote (5232)7/31/1998 8:23:00 AM
From: OldAIMGuy  Read Replies (3) of 18928
 
Hi Steve, Are you familiar with Jeff Weber's "cash cow" methods for diversification? Instead of "vealies" he lets AIM continue to sell after he's accumulated more than enough cash in reserve for each stock. Then periodically he "milks" the cow and starts new investments with the excess cash reserve.

This method also puts more of a cap on the overall risk exposure to any one security. It builds diversification from previous successes. Psychologically quite rewarding.

You are right, the small "cost of doing business" that deep discount commissions offers allows us to trade smaller amounts quite profitably and most likely more frequently. I've never asked the broker, but I assume they will accept "good until cancelled" "Limit" orders on odd lots. Anyone have any experience with this?

MAD (mean ave. deviation) sounds like a good way to get started with a SAFE target. Is MAD a regular feature of Lotus or did you have to construct it?

Best regards, Tom
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