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


To: Steve Grabczyk who wrote (15110)3/5/2001 2:58:04 PM
From: OldAIMGuy  Read Replies (2) | Respond to of 18929
 
Hi Steve, So far the VTSS warning hasn't done too much in normal trading hours.

I've been considering a new "rule of thumb" for AIMers. It has to do with linking the cash reserve percentage to trade frequency.

The idea would be to assume approximately a 50% cash reserve as your peak for a stock. Then we'd use 1/3rd of the cash (1/6th of the portfolio value) for buying as often as once a week. This would allow us to participate in minor market corrections that happen frequently.

The remaining cash reserve would then be used only on a monthly basis to reduce the "cash burn rate" should the decline deepen and lengthen.

The first third then would be our "quick trading" money while the remainder would be our "Uncle Scrooge" money.

I welcome any comments on this idea.

Best regards, Tom



To: Steve Grabczyk who wrote (15110)3/6/2001 1:16:24 AM
From: RFH  Read Replies (2) | Respond to of 18929
 
Hi, Steve. Jabil is looking a bit shaky with its worst returns since I have owned it. I'm reluctant to jump in with both feet at this time, and placed a buy order to "nibble around the edge" a bit. It didn't get filled today, as Jabil rose over a point. My current favorite, however, is BFR. (Commonly known as Little Frankie's Bank). It has been on a tear lately, and I finally was able to sell enough shares to get me out of my margin situation. I added the Newport chart which shows the relative stock to cash ratio, and it's wonderful to be out of the red and now I'm getting interest on the cash!

elnet.com

Sincerely,
RFH