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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 (14472)	1/21/2001 4:23:52 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Larry, Many when first starting with the various AIM software will set the dollar or share minimum to what they want but not set the other. If the default settings are left in place, this can cause a problem. In Newport, for instance, it defaults to $100 or 100 shares. If one sets the dollar amount to what is appropriate relative to commissions, (say $500) but leaves the shares based upon 100, Newport will calculate AIM's next sell and buy prices to satisfy the 100 share amount, the larger of the two (assuming the price per share is above $5/share). In other words, if the price per share were $15 and it had to satisfy the 100 share minimum, it would need a trade size of something in excess of $1500 to sell. The buy would be a smaller value. So, to get it right, one would set the dollar value to $500 and then divide that amount by the current share price to get the minimum number of shares to trade. Let's assume it was $10/share. Then you would probably set the min. number of shares to be traded to say 40 or 50 shares. Then both would be satisfied at about the same price point. With the advent of some of the newer accounting software, it's easier to keep track of one's FIFO gains (first in, first out) than on paper. So, odd lot trades aren't as bit a problem as before. If the account is a retirement or tax differed account it makes no difference at all. If it's a taxable account, then one has to keep track and trace the purchase and sale of each share. Best regards, Tom