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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: JZGalt who wrote (7877)	7/2/1999 9:08:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Dave, Probably the easiest thing to do is re-start with a new AIM spreadsheet at this point. If you want to follow what I've been experimenting with, set up the account with 20% Buy SAFE (resistance) and 0.0 Sell SAFE along with a 50% Cash Reserve. Then control the Cash Reserve to between 45% and 50% as the price rises with the use of "vealies." This conserves the Cash Reserve on the down swings in the event they continue for a long time and lets you stay with your equity position longer on the upside. If we see a decline and you use up some of the reserve, that's great. Now it's easier to catch Mr. Buynhold. If the price steadily climbs for another year, that's great too. You will still be about 45%-50% invested a year from now and ready for anything. This is a compromise but early testing seems to show good results. The next easiest option is your #3 with some slight changes. Continue with the existing spreadsheet but change the settings to what I've suggested above for Buy and Sell SAFE. Sell shares as AIM suggests until you reach 45%-50% and then continue with "vealies", sells and buys as AIM calls for them. I think to use #2 might give the best overall short term results, but it leaves you a bit light on Purchasing Power for right now. It also will require the most effort going back through the spreadsheet. I noted on the graph that AIM managed to get a nice $4000 ahead earlier in the time line - if only briefly! Since that was only about 5% of the total value, I assume it didn't trigger a buy. Looks like AIM would have been selling most recently, however. If you start with AIM more fully funded with Cash, then the "vealies" start sooner - therefore you have fewer capital gain events in the initial rise. This can help conserve both shares and value for a long term hold. Best regards, Tom