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

To: JZGalt who wrote (4999)	7/10/1998 11:08:00 PM
From: SAM	Read Replies (1) \| Respond to of 18928

I'm not a long time user of AIM myself, < 2yrs. But my safe pts are adjusted based on some cash restraints and keeping my portfolio diversified enough. Plus there are a couple of restrictions on trade $ amounts and number of trades. SO I have used those safe points and it keeps in the limitations and provides plenty of trading activity. All the while improving results and limiting risk.

To: JZGalt who wrote (4999)	7/12/1998 6:28:00 AM
From: Jim Battaglia	Read Replies (2) \| Respond to of 18928

Back in 1994-95 Tom sent out a message to AIM readers and it was along this same line of thought.He said, "with mutual funds the change makes for dramatic performance improvements." 20th Century Ultra Fund 10%Sell, 10%Buy..........: 10. 0.......... : 10. -9 ...... Value $38,475............ 48,619.......... 66,381 ........%Cash 71%............. 60% .............. 38% "as you can see, AIM strictly by the book was up 285% and very conservative with 71% of its assets in cash. With 10% for selling and 0% for buying the portfolio jumps up 386% with 60% cash. Then the most radical move without running out of cash completely is shown in 10% sell SAFE and minus 9% buy SAFE with the results being 564% with a still healthy 38% cash reserve. Please note that the extra gain comes with additional risk." Tom however went on to say that he uses the middle choice for most of his portfolios. I hope this helps answer your question. from the Aim Archives Jim http:investnbest.netmegs.com

To: JZGalt who wrote (4999)	7/14/1998 8:55:00 AM
From: OldAIMGuy	Respond to of 18928

Hi JZ, I did 10 year studies on TWCUX and CSTGX to test the SAFE total range. With each bit of shrinking the total range (buy SAFE plus sell SAFE) we get a bit more trading activity and therefore a fatter overall profit at the end. There's that point of no further return that arrives at about 10% for most growth stock mutuals. A total of 8% works for some more conservative ones. Those percentages assume a reasonable size to the account - say about $10,000 total value. Smaller accounts, you may have to shrink the range further to get some trading activity. Best regards, Tom