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

To: Ray Jahn who wrote (3794)	1/13/1998 1:02:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Ray and welcome!, When you go to start your Newport program file with the ADD A STOCK feature, you might as well show the price the day you sold the stock to start AIM. If you haven't already installed the program, you can set your computer's clock back a week and enter the new account as of a week ago. Then quit the program and reset the date of the computer to today's date. Now it will ask you to update the price with the current price. If you have already installed the program, don't worry about it and just start with the price the day you sold shares for the beginning of your AIMing. Newport asks you to update your prices weekly. You don't need to trade more often than you want, so if you want to trade just once a month, that's fine. I've averaged 7.33 "activities" per year with my IRA with Ultra. Of those "activities" 4.22 per year have been "vealies". So, I guess that leaves about three real AIM trades per year. However, the activities almost always come in strings and not evenly spaced in time. The reason for all the "vealies" is that the cash reserve has been pretty much fully funded with Ultra in recent years with very few buying opportunities. If you aren't familiar with the "vealie", you can read up on it in the FAQ page of the AIM web site. ( execpc.com ) The use of a bond fund or other higher income producer is a good idea. I am using a very short term govt bond fund that Am. Century offers for the bulk of my cash reserve (about 66% of the cash side of my AIM account) and the remainder is in their money market account. In this fashion, I get a better yield on the mix and still have enough liquidity for most market conditions. If the need arrises to dip into the s-t bond fund, I'll do so even if there's a bit of loss involved in selling the bond fund to buy more of the stock fund. Mr. Lichello discussed this method in the last couple of chapters of his book. It works just fine for me, so far. Please feel free to ask away! Someone here usually has something to help out! Best regards, Tom