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

To: LemonHead who wrote (9428)	11/30/1999 10:51:00 PM
From: Steve Grabczyk	Read Replies (1) \| Respond to of 18928

Keith: If it makes sense for you, it makes sense for me. It does seem that having all that cash laying about could be put to better use. Take a look at GSF. Nice high yield, very liquid and also 'AIM-able' itself. Got a nice buy on it yesterday. It's one of my 'eggs'. Thank you Master Veale! Lichello's classic example is one stock, or one fund. So it may make sense to have 33%-50% cash available. You are holding insurance on one 'egg' as it were. Now with more eggs....... .....I believe that with all of the ups and downs going on in our respective baskets, it's not practical (from a capital at risk standpoint) to have even 33% of total value in cash. So I think that as the total # of 'eggs' one has in his basket goes up, the total % of cash can go down without being at too much of a risk of running out. I can't say this with 100% confidence since I've only really been AIM-ing with real money for about 5 weeks. But so far (with lots of buys and sells), my cash % portion has remained relatively constant. As my total value grows (cash and stock), I will cross a $ threshold allowing me to buy another egg. BTW, after 5 weeks, I have about a third of the next egg reserved. Lessee now......if it takes 15 weeks to get each egg and I started with 7; after a year I should have about 11 1/3 eggs in my basket. Strength in numbers? Hmmm! How many mutual funds out there have 2/3 of their value in 11 stocks? Regards; Pondering in Paris

To: LemonHead who wrote (9428)	11/30/1999 11:36:00 PM
From: Dataminer1	Respond to of 18928

You guys are stirring up some thoughts here again. Seems a while back I thought about putting together a PCA that would sum up all the individual stock holdings and use the total as an AIM fund kind of thing. The more I thought about it, the more I realized how complicated that would be to explain to AIM newbies. Still an interesting idea though, and I may pursue it a bit in the future. If I'm way of- base here with what you guys are talking about, just ignore me. It seems that using a sum total of individual stocks in an AIM situation would require the task of deciding which stock to add to and which stock to sell when trades were signaled. Then there's the matter of keeping track of the number of shares and the prices as a "basket". Hmm...still sounds kind of interesting. Could add a bit of "subjectivity" though. I had a penny-stock guy ask if we could take the price format out to 4 or 5 digits. We should be able to oblige. I wonder if many people have had AIM experience on the pennies. Pretty much out of my field of expertise, but I have heard they can be quite volatile. I don't think I would classify them as "eggs" though. Oh well, to each his own. On the matter of cash reserve, I think it's entirely plausible to have a sort of "phantom" reserve, that quite possibly may never be needed. Instead of pulling Vealies, perhaps one could use the sell signals to fund the reserve, and really start with no cash. Of course this would only work if the stock went up quite a bit from the get-go. This is probably a better tactic for a fund or Blue-chip, that might not correct much except in an extreme market. Then there's the "margin guy's".... It's getting a bit chilly here tonight and I may have to close the windows before I turn in. Oh well, at least I haven't had to turn on the A/C for a month or so now and can't remember the last time I had the heat on. It sure is good to be back in FL after a few gray days in Cincinnati at Thanksgiving. I like my trees with leaves on 'em. C-ya D1 - ornery in Orlando