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Strategies & Market Trends : AIM Questions and Answers -- Ignore unavailable to you. Want to Upgrade?


To: SAM who wrote (196)8/22/2001 11:25:39 AM
From: OldAIMGuy  Respond to of 221
 
Q.... Short on Cash

Hi SAM, As you know, when we don't do all the buying AIM is asking our AIM trade ranges don't move down as far as they might otherwise do. This isn't a serious problem other than it will delay when we reach our next sell point. Raising Portfolio Control fully when only purchasing half of what AIM's requesting would just compound the problem of being out of phase with the trading range.

Some of the people with "deep diver" stocks have mentioned dropping the Portfolio Control (PC) value to a point where they at least start to get some trades with the stocks they have in a new, lower range. I'm not sure what I think about that idea. I've done some similar things in my own account in the past but it was only to lower the PC value enough to make the very first Sell still a profitable event overall (above the average cost per share).

You might want to shift the Sell SAFE to the Buy side to postpone your next Buy. For instance, if you are currently using 8% Sell and 8% Buy SAFE, make it 16% Buy SAFE and zero on the Sell side. This will bring the trade range down, help conserve some cash and make it easier for AIM to start selling again.

Please let me know how this works for you.

Best regards, Tom