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

To: JSLyons who wrote (12655)	9/1/2000 8:32:58 AM
From: Bernie Goldberg	Respond to of 18929

Hi Jonathan, You wrote: AIM is first and foremost a risk management tool, not a profit generation machine. First of all thanks for letting me know that there are at least three of us who understand that. Secondly let me add that in stating the above you may have answered your own questions about AIM. The two most important decisions for the AIM investor are: #1 Which vehicle do I want to use for AIM #2 How much capital am I willing to risk. You have answered #1 with your selection of stocks. You probably have answered #2 in your own mind. If you haven't, all you have to do is think about it. I'm going to assume that you want to run an individual AIM program for each of your stocks. You know how much money you have invested in each of them. You should also know how much you are willing to put at risk on each of them.That number is your beginning Portfolio Control. Since you are starting to AIM with investments that are already in place, it would be an AIM acceptable adjustment IMO. Hope this helps. Bernie

To: JSLyons who wrote (12655)	9/1/2000 9:43:22 AM
From: LemonHead	Read Replies (1) \| Respond to of 18929

Hi Jonathan, Very good post. Re: ASYT, I own it also. Just sold some last week and AIM is asking me to part with more at 29.77+. I set the GTC order for $33. Normally I get burned when I do this. But I am trying to maximize my profits. FWIW Keith

To: JSLyons who wrote (12655)	9/1/2000 9:02:21 PM
From: OldAIMGuy	Respond to of 18929

Hi JSL, Yes, Now you're catching on!!! Like I said, tiny trades for LIFO gains still add up to very respectable overall profits. aim-users.com Please look at the number of times that AIM has drawn my Cash Reserve on my ENTIRE PORTFOLIO down near zero in the last ten years. Remember, that I started my AIM accounts at Zero cash because I'd already done AIM-like buying in the 'crash' of '87. I cut my teeth investing in the joyous period of '69 to '74 - nearly the worst bear market in this country in the last century. I know that AIM is risk management. I know there's a price to pay for insurance. Thanks for taking the time to read Mr. L's book thoroughly. With a year's experience and a second reading, it will make even more sense. Best regards, Tom

To: JSLyons who wrote (12655)	9/3/2000 9:56:37 AM
From: Steve Grabczyk	Read Replies (1) \| Respond to of 18929

Hi Jonathan: No toes stepped on here! Actually, the core group on this BB has mentioned any number of times that the strength of AIM is Risk Management. IMHO, Lichello titled the book in error. Maybe it should have been A.R.M. Automatic Risk Management! Speaking as a long time lurker, and recent toe dipper (started actual AIM last November), I can speak from experience that trying to 'tune' AIM too much can get you off track. It's contrarian approach almost demands that you second guess and try to improve it; but it is a balanced approach to managing risk and once you tip it one way or the other, it tends to get off balance (higher risk/lower return). Key is to manage your cash reserve IMO. This was a lesson learned the hard way. I ran out of CR during the big drop in March and April because I didn't keep enough powder dry. I am still recovering. I can't count how many missed opportunities I've had since then. However, I can't really complain too much as I am still up 29% since November 1st, 1999 (after commissions in my IRA). But, My CR is only 3% at the moment. So, I'll sign this....... Steve (recovering AIMoholic)