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

To: matvest who wrote (13916)	12/10/2000 11:33:22 PM
From: LemonHead	Read Replies (1) \| Respond to of 18928

Hi Larry, My next Question is how does Newport calculate the default minimum number of shares to trade when a new stock is added? Larry, I know there is a default but I can't tell you what it is. I think that most of us change the minimum to 5% of the total number of shares that we start with. IMO it is also important to change the minimum dollars to trade at the same time. I normally set it at $1000 for taxable and $750 non taxable. This is assuming you are trading on line or at very low commissions. Back to minimum number of shares. I find that periodically that I have to make a change for different reasons. A split in one or prolonged activity on the buy or sell side. And I round out in increments of five. If my 5% minimum calculates out to 17 then I will set it at 20, if it is 23 then I will set it at 20. But rarely have I had to adjust the minimum dollar amount to trade. I'm not sure but I believe Minimum dollars to trade overrides minimum shares to trade. In any case, I found that the default settings did not preempt profitable trading for me in the beginning. I think it is very important that you adjust from the start. Remember that nothing makes sense if the total equity value doesn't approach the $10,000 mark (Equity + Cash Reserve). Keith

To: matvest who wrote (13916)	12/11/2000 8:01:53 AM
From: OldAIMGuy	Respond to of 18928

Hi Larry, There's no calculation in Newport for minimums when starting up a new AIM account. They default to 100 shares or $100. (that's if the account is started with more than those amounts otherwise I think it takes half of the # of shares or dollars) Newport's minimums are your choice. You want to make them large enough to keep the commissions and other expenses to less than 5% of the transaction (my recommendation). Mr. Lichello further recommends that you keep the minimums at or about 5% of the equity's value. Best regards, Tom