The AIM Price Range Calculation feature allows you to determine the transaction prices required for a given desired percentage price move and for a given desired incremental dollar difference.
The calculator just calculates the next BUYs and SELLs for individual prices or for a range of prices. For record keeping, I just use a spreadsheet.
From the last line of the spreadsheet I enter into the calculator, manually, the stock symbol (optional), the present quantity held, the Portfolio Control (PoCo), and the cash held (optional). The cash held entry is used only when setting the minimum order as a percentage of the total account value -- the stock value plus the cash.
Also, from the spreadsheet I enter in the NET price of the last transaction. That last transaction could, naturally, be either a BUY or a SELL.
Refer to screenshot
http://www.bean-d.com/cpt/graphics/aim_rangecalcex.gif
And a range calculation printout sample at
http://www.bean-d.com/cpt/detail/aim_rangecalcex.txt
You will notice on the screenshot and the printout that, for this example, I have set the min BUY order for 5% of PoCo and the min SELL order for a fixed $125.00.
Given those entries, along with the SAFE settings, the minimum SELL price AIM will allow in this example is $7.32. This is shown right above the "No Transaction Zone" (aka the "Hold Zone") legend in the printout. The quantity to sell is 19. While the transaction price would be $7.32, the NET price you would get, considering a commission of $10.01, would be $6.793158. These values are all on the $7.32 transaction price row.
In the example, the previous NET price entered is $6.25. The percent NET price difference is then 8.69% and is shown in the next to last column of the $7.32 transaction price row.
The NET DOLLAR difference of $10.32 is shown in the last column of the row. (($6.793158 - $6.25) * 19 shares).
That $10.32 COULD be a profit or not. That depends on whether the last transaction was a BUY or a previous SELL.
By the way, I would not myself take that $7.32 transaction price transaction in this example. I would scan up the last two columns for the first transaction that meets both my personal percentage and dollar criteria.
Arbitrarily, for this example, if you wanted 10% that would mean a transaction price of at least $7.37 would be required. And if you wanted at least a $50 NET DOLLAR difference, that would require a transaction price of at least $7.79.
NOTE: You can enter in ANY price you want for the last NET price. So you could enter in the NET price for some transaction other than the very last one. That does NOT affect the Next BUY or Next SELL calculations based on the quantity held and PoCo. It WILL effect, naturally, the last two columns.
This FAQ is also at
http://www.bean-d.com/cpt/aim-stock-price-range-calculation.php
More AIM articles are at
http://www.bean-d.com/cpt/index.php
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