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

To: Larry Grzemkowski who wrote (7291)	4/18/1999 9:27:00 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hi Larry, It is actually 10 minutes before market close as I said in an earlier post. I don't understand how setting the buy and sell resistance would make things any easier. IMO with UOPIX you would be buying and selling almost every day. I have my minimum shares set at 1 on all of my AIM accounts. Mr. L. says in the book not to worry about the number of shares. It is the number of dollars that count. I set the minimum dollars at 5% of the total (stock+cash reserve). Another way of doing it might be to make your minimum dollars 5% of Portfolio Control. You can find out what that is by pressing SHIFT+F4 in your initial screen on any stock in Newport. I update my minimum $$ about every 6 months. I have to admit that I have the time to put in my buys and sells at any time since I am a member of the Voluntarily Unemployed, but I don't find it complicated or too time consuming to calculate the price of UOPIX. For what it's worth, here's how I do it. 4/16/99 Price of UOPIX $143.75 Assuming that the price of the Nasdaq 100 OTC index is up by 5.4% on Monday 4/19/99 at 3:30PM ET. I multiply the 5.4% by two and get 10.8%. I then multiply 143.751.108 and get an answer of 159.275. The reason I multiply the increase or decrease by two is that UOPIX doubles the result of the OTC index which is what makes it IDEAL for AIM.* If 159.28 gives me a buy signal with AIM I call the ProFunds and place my order. If you are still on hold with 10 minutes to go till market close you hear a message telling you that you are still qualified for today's closing price. Hope this helps. Bernie

To: Larry Grzemkowski who wrote (7291)	4/18/1999 4:39:00 PM
From: OldAIMGuy	Respond to of 18928

Hi Larry, I use 5% of the equity side of the AIM account as the minimum for trading on most of my holdings. Yes, this essentially is like adding an extra 5% to the Buy/Sell Resistance (SAFE) value. However, on most of my stock holdings and the UOPIX account I've left the Resistance level at 10% on both sides and still use the 5% for minimums on top of it. There's always a trade off between frequency of transactions and the amount of profit realized in a "round trip" from a buy to a sell and back. If we lower resistance, we will trade more frequently, but for less profit on each trade. Of course, if you raised the resistance too high, you'd not have any trades. There's a point of diminishing returns that is different for each investment. Mr. L hit the mark pretty well for most investments. Now that computers are faster than when Bob Norman first wrote Newport it doesn't really matter as much, but Newport calculates your next buy and sell prices in both shares and dollars. If one uses just 1 share as the minimum and $1000 as the dollar minimum, then it makes Newport calculate all the possible share prices up to the $1000 value. You might notice it on an older computer, but not on a pentium machine. Back in the "Old Days" I used to try to keep the value of the dollar minimum and share minimum reasonably close to speed up the program. That 386 machine was long ago retired! Once you get a feel for a stock or fund, you'll "set and forget" the SAFE values and not tinker so much. BTW, I have Buy/Sell Resistance set at + or - 15% on some stocks. My feeling is that if they're volatile enough to get trade activity with a higher SAFE value, then why not take the corresponding larger profit per turn? Best regards, Tom PS: We went to St. Lucia last year. An amazingly beautiful place. Nice people. 3000' peaks above sea level. We didn't rent a car, just walked to places to eat and took tours to places that were too far to walk to.