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


To: Rich23241 who wrote (14400)1/18/2001 9:10:58 AM
From: Steve Grabczyk  Read Replies (1) | Respond to of 18928
 
Hi Rich:

Answer to your question is......it depends. It depends on how you're approaching your AIM account.

BTB; Lichello, in effect, says review it as frequently or in frequently as you desire, but pay attention to the 5% of shares and efficient minimum guidelines. He also mentions that AIM management is essentially automatic and shouldn't become a compulsion. Therefore once or twice a month was fine in his opinion.

Or; like some of us on this board, use GTC limit orders that are precalculated to cover the 'Safe', %of shares and/or minimum trade $. Then when it executes, you recalc the next limits (on both sides) and resubmit the orders. This could be considered a 'constant review'. Probably less efficient from a cash management standpoint, but in some respect, even more 'automatic'.

There really is no hard rule as to frequency of review, but rather what you're comfortable with. Hope this helps.

Regards, Steve



To: Rich23241 who wrote (14400)1/18/2001 11:33:29 AM
From: budweeder  Read Replies (1) | Respond to of 18928
 
Hi Rich; Steve gave a very good response...I will add a few words....There are a number of good software packages which implement the AIM concept in an easy fashion...some have different features, so you may want to investigate that...I use Newport which asks for a price update on a weekly basis, on Sunday.

I will make a maximum of one buy or one sell on an account in the week following the AIM recommendation...if there were a large move in price on the Monday that negated the move, I would not buy then....if later in the week, the buy or sell was again viable I would do so.

You will probably find a frequency that seems best for you...there is probably a range of time among AIM users on this board from daily updates, to monthly, along with commensurate buys or sells.

You are right about the 2X funds....they certainly reach the Lichello test for high volatility..but are a wild ride....again, each investor should know his/her own tolerance.

Regards, Bud



To: Rich23241 who wrote (14400)1/21/2001 8:43:52 AM
From: OldAIMGuy  Respond to of 18928
 
Hi Rich, Good answers have already been given to you about frequency of trading. I wrote a note sometime around the first of the year on the subject here as well. I let the type of equity be somewhat of a determinant regarding frequency. Some stocks are tied to very long business cycles and some to very short. The shorter the business cycle, the more frequent I will trade.

Best regards, Tom