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

To: D VanSwol who wrote (5326)	8/14/1998 5:45:00 PM
From: OldAIMGuy	Read Replies (4) \| Respond to of 18928

Hi Dennis, Let's assume that you have decided that a 10% Resistance (SAFE) is proper for both the Buy and Sell side for achieving the desired 80th percentile range. Now, if you feel that the fundamentals are growing stronger, total the two Resistance values and place them on the SELL side. Now you have 20% Sell Resistance and 0.0% Buy Resistance. You are inhibiting AIM's selling, while encouraging portfolio building buying activity. A vealie takes place when your portfolio reaches a point that has plenty of cash reserves and no further selling is needed in the near future. Instead of following AIM Sell market orders, you take 1/2 the value of the sell order and add that amount to the Portfolio Control. (you find Portfolio Control in Newport by pressing the SHIFT key and the F4 key together) This raises the next sell price AND the next buy prices slightly. After several vealies in a row, you will find that the cash reserve percentage has been "diluted" by the growth of the equity. Now you can sell once again to bring the Cash Reserve back up to your comfort zone. This will take care of improving fundamentals easier than trying to out-guess what SAFE to use. If you are comfortable with 40% Cash Reserve for your investment, then keep the cash reserve between 36% and 40% in a rising market by use of a combination of vealies and sells. When buys come along, then your cash will get used and this won't be of concern. You'll be happy to rebuild the Cash Reserve back to it's 40% level. Best regards, Tom