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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 (5328)	8/15/1998 12:41:00 AM
From: Bernie Goldberg	Read Replies (2) \| Respond to of 18928

Hi, One of the traps that I fell into which was more my fault than Newport's is the tendency to trade to often with a rapidly falling stock. Most of the people on this thread think that because they update weekly. They have to buy and sell weekly. Mr. Lichello explains quite clearly that once a month is enough and that you can go twice a month "if you need a little more spice in your life". It would be interesting to see where you would be sitting now if you had followed AIM's advice by the book, 33% cash 67%stock and trading twice a month. IMHO I think you would find yourself with more shares purchased at a lower price. There is no doubt these companies will come back, it's just that they wouldn't have to come back as far. Bernie

To: JZGalt who wrote (5328)	8/15/1998 9:32:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Dave, For comparison purposes, what's the average fall of the stock prices VS the loss in the AIM accounts for this period? I assume AIM's still ahead, but would like to see the numbers if available. Thanks. Experience with AIM is probably the best guide for deciding the frequency of trading. Most of my stocks seem to do just fine with 1 week intervals for trades, but some of mine I'll delay as much as a month. No rule for this, just time and experience with both AIM and the individual issue. Some stocks fall like stones and others like feathers. However, when the cash runs out, our Buying Power evaporates. Chances are you've participated in the biggest part of the decline and now have a good average cost going forward. With the stocks near their "fundamental bottom" the road back to profits and a healthy cash reserve isn't that far away. Now, one more question: Knowing what the downside is like, what will your maximum Cash Reserve be in the next rally? Will you start using vealies at 33%? 50%? Best regards, Tom