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


To: Bernie Goldberg who wrote (11293)5/29/2000 5:06:00 PM
From: Jack Jagernauth  Read Replies (1) | Respond to of 18928
 
Hi Bernie,

I looked at AIM by the book as well... 5% min. trade, 10% buy safe and 10% sell safe.

Here are the results:

The settings of 5 / 10 / 10 generated 28 trades and ROCAR of 94%.
Cost per share - $4.96.


I changed the parameters because I wanted to trade a minimum of $1,000 (which is 10% of my equity value) so that I could keep my commission cost at less than 3% per trade (I am paying $27 per trade).

At this time, I am comfortable with 0% buy safe because I started this AIM account after the stock took a huge dive. Sell safe at 14% might be just a little greedy.

Regards,

Jack



To: Bernie Goldberg who wrote (11293)5/29/2000 8:49:00 PM
From: LemonHead  Read Replies (1) | Respond to of 18928
 
Hi Bernie,
My mission this weekend was to determine if I could get a leg up by applying Margin with AIM at the bottom of this Bear market when and if it ever comes. As was noted I started by screening for possible candidates that would move up the quickest. Tom had mentioned prior something to the effect that the Strongest would come back the fastest. So I screened for Cash rich companies with steady growth that bear minimal problems in a recessed economy. So I got my list. What next?

Presently all software available for AIM does not allow for ledger of total expenses. Hope you guys are listening. To get a more accurate picture of the bottom line you have to coordinate with one of the established tax programs like "Quicken 2000" and or I believe you use "Money 2000". Now I'm changing the parameters by adding Margin expense and risk to the equation... So how to evaluate?
Well I got my picks. So then I write up a plan. Now I need to test the plan going forward. How and with which software?

So I decide it is time to build my own spread sheet and incorporate all possible expenses that directly effect the bottom line. Yes I got out Lichello's manual and went to work? No more mister nice guy, I added columns for all possible revenue and expenses.

After several failed attempts I finally came up with a model that at least I understand what is going on at the bottom line. And it is testable...

First observation is that you don't want to mess with Margin expense as it can get your goat on the expense side real fast and put you on the train to South American if you pick the wrong stock. Barry, not picking on your home base.

Second thing is I finally understand about the bottom line consequences of selling at the minimum AIM recommendation. It's like treading water. You can breath but you can't seam to get a foothold on land.

Third, is that I see some real opportunities being presented with the general market. FWIW I don't think 10% buy and sell Safe is the optimal setting for any new entries at present. FWIW.

Keith