Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: aptus who wrote (15441)	3/30/2001 6:12:43 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Mark, I think I can help to muddy the waters here with some stuff from my Q&A page: aim-users.com aim-users.com and aim-users.com My biggest concern is that if the stock is too far off its original cost basis and AIM's started at today's price, one would need an exceedingly long time to work back to break-even with AIM working over-time. Averaging down is what is done to bring the portfolio back into a trade range that brings it whole sooner. Of course all this requires the stock has some motion other than straight down. If it wiggles, AIM will help. If it's dead or dying, nothing helps. Best regards, Tom

To: aptus who wrote (15441)	3/31/2001 10:12:25 AM
From: Bernie Goldberg	Respond to of 18928

Hi Mark, That is exactly the point that I was trying to make. Whatever day today is, it is the day you are starting to AIM. IMO that is when you start your AIM program. Bernie

To: aptus who wrote (15441)	3/31/2001 10:32:38 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hi Mark, Yet another answer to the same question: I will refer to page 191 of the book. "Q. Could you suggest a good way to convert present holdings into an AIM program? A. No problem. Decide how large and AIM program you want and set up your record sheet to reflect it. If you want to start a $10,000 AIM program, say, you'll naturally need $5,00 in stock and $5,000 in cash. Where you get the stock and cash is no concern of AIM's. You might have $10,000 worth of stcks right now, and no cash. You'd then have to sell $5,000 worth of stock in order to raise you $5,000 CASH reserve. If you wanted to start a $20,000 AIM program, you could use your present stock for your $10,000 STOCK VALUE section, but then you'd have to come up with $10,000 in cash." In my opinion the key phrase above is "Where you get the stock and cash is no concern of AIM's." the whole point of AIM is to remove emotion from the investing process. AIM is not concerned with happened to a stock before you started using it. The investor might be, but that is totally irrelevant to AIM. Changing AIM before you even start is sort of like saying let's play a game of baseball, and just for kicks we'll use a pingpong ball instead. It could conceivably be a good game, but it wouldn't be baseball. Bernie