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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 (3801)	1/14/1998 5:31:00 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hello Ray, When dealing with dealing with Mutual Funds you will most likely deal with dollars rather than shares. I set my minimum number of shares at 1. According to Mr. Lichello's book you should set your minimum dollar amount at $500 or 5% of your total stock value whichever is greater. If your share price is 13.23 (that does seem a little strange), and you have a 100 share minimum with a $1000 minimum you won't be able to buy any shares until TWCUX drops to $10 a share which is a 32.3% drop. You should be getting more AIM activity than that on a price drop of that magnitude in my opinion. Mr. Lichello in his book states quite emphatically not to worry about 100 share blocks. AIM works with dollars and percentages. As a matter of fact I have my minimum shares set to 1 on all of my accounts. For example: I bought this week 26 shares of DD at 53.025 for a total of $1403 including commissions. AIM will instruct me to sell 19 shares when the stock reaches 71.625 my total income for that transaction will $1353 including commissions. I use Jack White for a broker and total commissions for the 2 transactions is $50. My net gain on the 2 transactions will be 7 shares of a $53 stock at a total cost of $50 less whatever dividends I receive from the 26 shares of stock in the interim. This works out to approximately 26+%($371 less taxes). Hope this helps. Bernie

To: Ray Jahn who wrote (3801)	1/14/1998 12:15:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Ray, As supplement to Bernie's directions, for Newport's relief, it's good to set the minimum number of shares below, but near the value of the minimum dollar value you've chosen for the fund. For instance, if you choose $500 as your minimum for trading and the share price is presently an indicated $13.23 then 500/13.23= 37.792. You would set the minimum Share amount at 30 shares. This leaves Newport free to calculate the minimum on the Dollar value instead of the Share value. The benefit is that Newport "runs" faster. It's always calculating what the next buy and sell points are relative to the min. dollars and min. shares. If there's a big difference in value, there's more calculations to be done - which slows Newport down. This isn't a bit deal, but does help. As Bernie said, the minimums of 5% of the equity value or $500 will be appreciated by both you and your fund manager! Best regards, Tom