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

To: jaser20 who wrote (18781)	10/19/2022 1:33:17 PM
From: OldAIMGuy	1 Recommendation Recommended By Zen Dollar Round Respond to of 18928

Hi Jaser, Re: Minimum starting AIM invested value.................................. In general I suggest $10,000 invested with a suitable cash reserve. That gives you either $500 as a minimum trade or $1000 if you are trading 10% of value. I've been using 5% or 10% of Portfolio Control as my minimum trade size for a long time now. Basing it in the PC value keeps it symmetrical in dollars on both the buy and sell sides. This isn't necessary, just a habit I use. It equates to 5% of Shares on the Sell side and about 6% of shares on the Buy side (10% on the Sell side or 12% on the Buy side if you're using the larger minimum trade size) It gives a bit larger discount on price on the Buy side. Further, contributor, Steve "Grabber", came up with Low Down AIM. This really helps with high priced shares and limited total investment. His goals were twofold - One was to "get liquid" in rising cyclical markets and the other was to take limited funds and be able to have more individual AIM stock engines running inside a limited account such as an IRA. Here's a description and spreadsheet from the ancient AIM web site I had: Several AIM users contributed to an idea of using "virtual" shares in an AIM account. Steve Grabczyk formalized it while the name "Low Down AIM" materialized. It's now referred to as LD-AIM. You can read more about this concept and use Steve's handy spreadsheet to get a feel for how this works. The idea works well for people with limited assets available to deploy into an individual AIM account or for those interested in an AIM method which can go 100% liquid cash once in a while. Steve continues to have good success with this method. One might be trading 5% of Real plus Virtual Shares on a target where in actual shares compared to "real" holding might be quite a bit more. If you assume you would like to go fully liquid in 5 consecutive Sell trades, you would set the Real + Virtual number at twice the Real share count. Assume 500 shares Real plus 500 Shares Virtual = 1000 LD AIM shares. Selling 100 shares with each consecutive sale would then draw the Real shares to zero in 5 consecutive trades. Steve will be willing to help you get this all correct if you are interested. You can contact him at: investorshub.advfn.com Best wishes, OAG Tom