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

To: aptus who wrote (15446)	3/31/2001 6:31:38 AM
From: OldAIMGuy	Respond to of 18928

Hi Mark, I thought this article was interesting: jsonline.com Best regards, Tom

To: aptus who wrote (15446)	3/31/2001 6:48:38 AM
From: OldAIMGuy	Respond to of 18928

Hi Mark, I think I did write something about shorting and AIM. I think I titled it "AIM for the Shorts," but can't find it via SI's search engine. It works as a "Through The Looking Glass" kind of way in using AIM. We start it by selling short say 500 shares of a $10 stock and setting aside $5000 of Cash Reserve. Should the short position go against us, we'd short some more at a higher price; maybe we'd short another 100 shares at $14. In other words, instead of selling actual shares, we'd be selling short the same number of shares that AIM would suggest at that price. If we were clever and the price did start to fall, AIM would signal a "buy." We'd do exactly that and cover that portion of the short position. For instance, maybe AIM would suggest we "buy" 100 shares when the price hit $7/share. We'd "buy back" 100 shares of the shorted position. We'd continue covering our short position as the price fell further by buying shares, just as AIM requests. Using this method, AIM will have us completely close out the short position when the price hits around the $5 mark. We could stop there and just let it go. I guess we could re-initiate the short position if the price were to start to recover or maybe wait until one judged that the equity in question was again well over-priced and ready to be shorted again. I've never done this, so can't comment on it from personal experience. However, there's people out there that do a great job of picking SHORT candidates. AIM is one way to effectively handle just that sort of situation. AIM would be just as "responsible" in managing shorting as for buying long. Best regards, Tom PS: The best time to short this market is a year ago!! :-)