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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 (14654)	1/29/2001 8:41:03 AM
From: Bernie Goldberg	Read Replies (2) \| Respond to of 18928

Hi Larry, You wrote:I like a Biotech, Orchid (ORCH), but it is more risky than I am comfortable with placing $6,300 (63% of 10,000) at risk. Would you be more comfortable at $5,000/$5,000? That is the whole question. After all Portfolio Control(the amount of the initial purchase of stock) represents the amount you are willing to initially put at risk in an investment. One change I would like to see in AIM programs is this: Instead of asking how much did you pay for shares when setting up an AIM program, asking how much are you willing to put at risk. IMO that is the cornerstone of AIM, namely risk management. It is very wise of you to consider that at the outset. You could start with the one that you are not too comfortable and only 4 or 5K as your initial stock investment. If it should immediately drop instead of buying more of it, you could purchase shares of the the other one as Mr. L recommends in his book. Whatever level of risk that you are comfortable with is what will work for you. Hope this helps. Bernie