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


To: OldAIMGuy who wrote (17692)1/3/2002 11:19:46 PM
From: Jack Jagernauth  Read Replies (2) | Respond to of 18932
 
Hi Tom,

I guess it might make sense to use the Add Shares feature in some situations where one happens to be AIMing a Deep Diver.

Let's say, for example, that one started an AIM account with $20K as follows: $10K in stock (500 shares @ $20/sh) and $10K in cash (50% as per the IW today).

On the way down to about $7, the cash reserve gets depleted, but the stock continues to drop all the way to about $1.55.

It seems almost hopeless, but if one were to 'borrow' $10K from another account and buy more shares at this level, it would probably make sense to use the Add Shares feature rather than record the trade as a Buy.

This course of action might prevent the AIM account from getting thrown out of whack, and also avoid the need to adjust the Safe Settings to ridiculous levels just to keep from selling too soon, particularly if the stock appears to have lots of upside potential at the $1.55 level. Thoughts?

I enjoyed reading your 2001 report. It seems like it was a good year for planting seeds.

Regards,
Jack