AIM Stock/ETF Buy/Sell Transaction Calculator Updated v8.1

AIM Stock/ETF Calculator Version 8.1 Available

The Premier AIM Stock/ETF Buy/Sell Transaction Calculator Program has been updated to v8.1.

This software program implements Robert Lichello's Automatic Investment Management (AIM) algorithm, with enhancements.

AIM is a Core Position Trading (CPT) method where investors are "forced" to "buy low sell high" portions of their core positions in stocks or ETFs. A portion of their holdings is to be sold on rallies (selling high) and repurchased on dips (buying low), to ensure long-term gains.

Previous purchasers of the program have received an email with a link to a web-page having the software download and other links.

Other investors interested can discover what AIM is all about and purchase the software by starting at AIM Calculator Software Program for Stock Trading and ETF Trading.

Updated Items

Previous purchasers, note that several other items have been updated:

The screen-shots on various web-pages have been updated.

The program description is updated at:
AIM Calculator Software Program for Stock Trading and ETF Trading.

The program user document is updated at:
Stock and ETF AIM Trade Management Software User Doc.

The important page discussing what trades to consider, and which to not, is updated at:
Stock and ETF AIM Transaction Price Range Calculation.

The sample Price Range Calculation listing is updated at:
Sample Price Range Calculation listing.

The handy spreadsheet for summarizing your positions and next transactions has had a face lift by color-coding the spreadsheet cells to clarify which cells are for user input and which are protected. That is available only to purchasers of the software, but the update user document is at:
AIM for Stocks and ETFs Position Overview Spreadsheet User Document.

Update Summary

The main screen has been given a face-lift.

* A few of the user input text boxes have been re-arranged.

* The color scheme of the input text boxes has been simplified.

* An additional input text box for the Previous Transaction Price has been added. That accompanies the Previous NET Price text box.

* Two of the results columns have been greyed out to clarify that they are for information only, not for action.

* An "Action Analysis" box with additional information replaces the information pop-ups for that information.

The Price Range Calculation listing has been revamped.

* The heading display lists the items in the same order as on the main screen.

* Two table columns that displayed reference information have been removed. If a user is really interested in that information, the user may get it from the main screen "Exact Qty Calc" results column for a given Transaction Price Calculation.

* The last two columns previously give "% diff" and "$ diff" have been replaced with three columns under the general heading "DIFFERENCE CALCULATIONS". The two colums just mentioned are now named "Net %" and "Net $". The added third column is "Trans %", which shows the percentage difference between the Previous Transaction price entered on the main screen and the proposed transaction price for the table row of interest.

* Warnings are appended to each line where a potential transaction is not recommended.

* The warnings are described in the Notes at the bottom of the Price Range Calculation listing.

Questions? Comments?

Feel free to use the Comments section for questions and comments, and suggestions.

AIM Stock/ETF/Mutual Fund Position Overview Spreadsheet & User Document Updates

I have recently updated the Position Overview Spreadsheet and User Documents you will get links to when you purchase the CORE POSITION TRADING™ (CPT) AIM Stock/ETF Fixed Commission Transaction Calculator software program.

All the links for downloading the program, viewing user docs, and related sites are will be furnished when you purchase the program.

There are two versions of the user documents, one for each of the two spreadsheet variations available, that you can take a look at:

Click to see the AIM Position Overview Spreadsheet User Document (original version).
Some like that one better.

Click to see the AIM Position Overview Spreadsheet User Document (latest version).
I prefer this one for my own personal use.

Click to see an example AIM Position Overview Screenshot.

AIM high,
DB

Inflation Indexing of the AIM Portfolio Control

Introduction

Robert Lichello's AIM is an acronym for Automatic Investment Management. AIM and modifications are a very popular investment management technique. It makes little or no use of technical analysis (TA) or fundamental analysis (FA) and so usually requires less management time than TA of FA trading and management. Yet it frequently provide much better returns than buy and hope (buy and hold).

Portfolio Control (PoCo) Adjustment in a Non-Inflationary Environment

The AIM Portfolio Control (PoCo) is the main feature of the AIM algorithm for determining how much stock (or mutual fund or ETF) to buy or sell at various price levels.

In a non-inflationary environment, there would be no need to adjust (index) PoCo except in the happy circumstance that a stock price increased dramatically. In such a case, there would be many more Sell transactions than Buys, so the cash portion of an AIM account (one stock, mutual fund, or ETF plus the cash) would get to a level that you might consider excessive in relation to the value of the stock still held.

In such a case, you might do a "Vealie" on the PoCo. That means increasing the PoCo. A Vealie has the effect of moving the buy-sell hold zone up, so that it becomes a little harder to sell more (conserving stock), and easier to buy more (using up some of the excess cash).

Unfortunately, We Are in an Inflationary Environment

Because we are in an inflationary environment, I recommend indexing the Portfolio Control (PoCo). Why and how to do this is discussed on my website at
http://www.bean-d.com/cpt/inflation-cpi-adjust.php

My unequivocal position is that if you do NOT index your PoCo for the results of inflation -- the increase in the Cost of Living -- you will be Buying and Selling improper amounts at various prices.

This is serious, not trivial. If you do not index PoCo, what you may think are acceptable results may in actuality be a diminishment of your capital.

Discover the details at "Indexing the AIM Portfolio Control for Inflation".

Chances for Making Money Better with Core Position Trading

Ah, the lure of making millions in the stock market. I too have seen some of the late night television infomercials - red lights, green lights -- red arrows, green arrows -- whatever. I've even gone to some of the rah-rah hype and hope meetings at local hotels.

Oh, the messages are so wonderful. "See what we can do, and you can too." Just give us $2000, $5000, $10,000, and you too can join the elite ranks of "millionaires in pajamas".

All boil down to some sort of Technical Analysis (TA), though some downplay that and just promote the magic software that tells you to just buy or sell without showing you the workings.

Some popular technical indicators included in the programs offered include moving average crossovers, MACD, RSI, etc. There are hundreds, maybe even thousands of technical indicators, with more "invented" every day. Why do people feel the need to come up with new indicators? BECAUSE NONE OF THEM WORK CONSISTENTLY. So it is a search for the holy grail.

Naturally, on the infomercials and the "introductory seminars" you are going to see testimonials only from the successful (so they say) students/traders.

Technical Analysis (TA) MAYBE can work for some people. If it actually does so, it does so for only a VERY SMALL percentage of people. I think perhaps it takes a combination of TA knowledge, some sort of intuition, AND a LOT of (expensive) experience. This is beyond 90% to 99% of us -- including me. And, frankly, I am smarter than most. So what chance do you have? ;>)

So, I have succumbed to the lure and also have dinked around with Technical Analysis. But I have NEVER made any money using it. Fortunately, I haven't been hurt too bad, but that is because one of the first things I paid attention to was learning about stop losses (stop loss orders).

Now, I have made some money in the stock market. Not grand theft money, but not chump change either. The method I have used is variations of AIM -- Automatic Investment Management, popularized in a book by Robert Lichello, inexpensively available from Amazon. The title is rather hokey and overstated, but it does present a method of actually, consistently, buying low and selling high, over time.

I offer an inexpensive software program that implements the AIM algorithm. When you order, you will receive that and links to various resources pertaining to AIM. Here is the URL for the program: Core Position Trading AIM Program.

GTC Limit Orders with CPT / AIM

With AIM (Robert Lichello's Automatic Investment Management), we trade OPPOSITE the typical trader. When they buy, we are selling. When they sell, we are buying. As a stock price goes up, they are buying and we are eagerly selling to them. When the price goes down, we are eagerly buying from them.

So, when we are selling, we sell on a price RISE. If the price reaches a certain point, we are willing to SELL. The GTC LIMIT order to SELL does that for us.

Say a price is now at $10.00. A typical trader would perhaps have a BUY STOP order in for $10.50. We might have a LIMIT SELL order in for $10.50. At $10.50 (or slightly higher), he buys our shares from us.

When we are buying, we are buying on DECLINING prices. If the price goes down to a certain point, we are willing to BUY. The GTC LIMIT order to BUY does that for us.

Say a price is now at $10.00. A typical trader would perhaps have a SELL STOP order (aka "stop loss") in for $9.50. We might have a LIMIT BUY order in for $9.50. At $9.50 (or slightly lower) we willingly buy the shares from him that he is dumping in a panic.

Stop Orders and Limit Orders Clarified

Most people are familiar with the SELL STOP order (that is also know as the "stop loss order"). When the price DECLINES and hits your STOP price, the order then becomes a MARKET ORDER to SELL. (That is why you often get a worse sell price than you may have expected.)

You can also place a SELL STOP LIMIT order. That is where if the price hits the STOP, the order becomes a LIMIT order. You set that LIMIT price below the STOP price. So there is that range where the order will be executed -- if it is executed. If the price drops too far too fast, you will still have your stock. So if you were looking for a "stop loss" with a SELL STOP LIMIT, you could be S.O.L.

Conversely with the BUY STOP order. When the price RISES and hits your STOP price, the order becomes a MARKET ORDER to BUY.

Now, to prevent paying too much on a BUY (say you want in, but not at a ridiculously high price), you can put in a BUY STOP LIMIT order. You set the LIMIT part of the order at the maximum price you are willing to pay. So, if the price hits the STOP price, your order becomes a LIMIT order, where you may get a BUY fill price below your LIMIT price. If the price rises too far too fast, you may not get filled on your BUY order.

The BUY STOP LIMIT order is frequently placed the night before as a day order when you want in, but if the opening price is too high, fuggedaboudit.

Also note the SELL STOP order or SELL STOP LIMIT order can be used instead of a MARKET order to initiate a SHORT position. Then a BUY STOP order is a "stop loss" order if you are short and want/need to cover.

------ Limit

.10 typical

------ Buy Stop

.15 typical

------ Ask
------ Bid

.15 typical

------ Sell Stop ("stop loss")

.10 typical

------ Limit

Good Until Cancelled (GTC) Orders Psychological Price Points

It is important to set your AIM transaction GTC buy and sell points at psychological price points, whenever possible.

I use AIM (Automatic Investment Management) to "force" me to buy low and sell high. Someone "forced" me this afternoon to sell him some PAAS at $31.84, my GTC sell price. I had that order in for some time. The price was just touched this afternoon, then backed off substantially. But my order was filled.

If I had set the GTC at 31.85, a "nice round number", my order would not have been filled today. It might have not been filled until tomorrow, next week, next month, maybe never... Who knows?

For SELLS, I suggest setting the price a cent or two below nickle and dime prices. For BUYS, a cent or two ABOVE nickle and dime prices.

Frequently, the "even" nickle or dime price may be approached but not hit. The price you set a penny or two away may well be hit. Even on 100 shares, the penny you may "lose" by taking a price that is likely to be hit rather than waiting for the even nickel or dime or even a penny or two on the other side, amounts to only a buck or two.

AIMing with Puts and Calls

There has been occasional mention of selling Call options against your AIM holdings. Covered Calls and other option plays against your AIM holdings can give you some additional income.

E.g., if your next AIM GTC Sell order would be for 100 shares or more at a strike price that is now fairly close, above, the present stock price, might as well sell a Call, and keep the premium.

If the stock doesn't reach the strike by the option expiration date, you got the premium and you keep the stock to sell another Call against it.

If you are called (exercised) on, you still got the premium, and you get the price you want for the 100, 200, whatever shares you are called upon to sell.

Other plays for when you are near a buy point.

Sorry I don't have time to go into this, there are a lot of things to consider, but if interested, check out coveredcalls.com, generatethousands.com, and other sites.

What stocks/ETFs to AIM

What stocks/ETFs to AIM in light of Peak Oil and Weather Wars (Hurricane Katrina)

Originally posted on Tom Veale's iHub AIM forum
http://www.investorshub.com/boards/board.asp?board_id=949

/// My Original Post -- 2005-09-04 ///

"What to AIM for". Every so often we need to be and ARE reminded that we are skating on thin ice, and that it is cracking beneath our feet.

If you think things are going to be A-OK if you just get YOUR choice of President and/or Congress installed, if you think that we can continue to overpopulate and strip resources bare, you need to WAKE up.

http://www.lifeaftertheoilcrash.net/

The war in Iraq *IS* for oil. "Democracy"? There (or here) -- Fuggedaboudit. Hurricanes can be steered. Katrina New Orleans was likely merely "collateral damage" in an effort to take out drilling and refining capacity. "Let the games begin?" They already have.

Google "Peak Oil" and "Weather Wars".

So think about what is in your AIM portfolio beyond the "latest and greatest" and the "kewlest" (coolest/hippest).

In Lichello's day, we could possibly be excused for thinking about long-term investments. Now? Possibly LD-AIM is more suitable for all? If not outright speculation.

AIM for Stock/ETF Profits -- Buy/Sell Calculator Program
http://www.bean-d.com/cpt/aim-stock-etf-transaction-calculator.php
Regards, DB

/// Response from RetireOnCSCO -- 2005-09-04 ///

>> The war in Iraq *IS* for oil.

Maybe not for oil, but certainly not for Democracy. It was payback for 9/11, lets be real.

>> Hurricanes can be steered

Now this is very amusing! You have lead me to a great series of websites that reminds me of the X-Files. All Government conspericies [sic] and all.

You are actually suggesting that the Government of the US steered Katrina into New Orleans to kill 100's of people, cause Billions of $ damage, for what? Who's going to help the Feds pay for all the $ they will now POUR INTO that area? I can see a business burning down buildings for insurance, but not this!

I have worked with some of the Governments's [sic] top people, and trust me, they aren't that organized to pull something like this off.

Also, why is it that cool (seemingly imposible [sic]) ideas like steering a hurricane wouldn't be used for good? Just like the X-Files, these outragous [sic] ideas are always behind some govertment [sic] plot.

What I don't understand about the link I found to Tom Bearden, is why startup companies (like Ballard Power in Canada) wouldn't jump on the idea of 'free' power?

Very amuzing.
John

/// My response to RetireOnCSCO -- 2005-09-04

RetireOnCSCO: There are three types of people: There are those that 1) make things happen, 2) are aware of things happening, and 3) are NOT of aware of what's happening. I am in category 2). You, with all due respect, seem to be in category 3).

It was payback for 9/11, lets be real.
Simply wrong. If you accept the official government line as to the plane highjackers, "we" should have bombed/invaded Egypt and/or Saudi Arabia and/or Iran instead of Iraq. Maybe even Russia or China.

Now, if you want to get into conspiracies, it is quite possible 9/11 was financed and/or allowed to happen by "black ops" U.S. government. That doesn't mean a puppet like "Bush the Younger" necessarily knows what's going on.

Hurricanes can be steered
I doubt you are a meteorologist. I am not one. Several "real life" meteorologists and other scientists say it IS possible.

I didn't say it was the U.S. government. I did mention "Weather Wars". But it is not impossible that the U.S. government did do it. Disasters, after all, are a great excuse for governments to step in and "save" us, necessitating more control (exercise of power).

Who's going to help the Feds pay for all the $$$ they will now POUR INTO that area?
YOU will. Few people, including likely yourself, realize that this world now runs on fiat and credit, not "money". YOU will pay with higher prices, not only on gasoline, but everything else dependent on petroleum. Your (and all the uncontrolled breeders') consumption has to be curtailed.
(You could also Google "fiat money", "credit money", etc., and also the section in the link of the original post about how the banking credit system we have has for about 500 years has become energy (petroleum) dependent.)

I have worked with some of the Governments's [sic] top people, and trust me, they aren't that organized to pull something like this off.
Depends on what area of government. The hidden arms don't have to worry about P.R., re-election, and publicly scrutinized funding.

Also, why is it that cool (seemingly imposible [sic]) ideas like steering a hurricane wouldn't be used for good? Just like the X-Files, these outragous [sic] ideas are always behind some govertment [sic] plot
Let's see, those who take the trouble to get hold of power are doing it for YOUR good, right? How naive.

...why startup companies (like Ballard Power in Canada) wouldn't jump on the idea of 'free' power?
IF it exists, maybe it's just that they are not 'authorized.' I doubt the 'free power' bit myself. If it exists, where is the toy as a demo, or the home kit (like kit airplanes, home solar stills, etc.)?

The miracle energy source is the last refuge of the sleeping sheep -- "well, I don't believe that there is an oil problem, but if there is, then hamster treadmills and 'zero-point' energy will save us." Even if feasible, there is the problem of switching the infrastructure.

Ballard (BLDP) has been headed for the dumpster for years. I had if for awhile and dumped it. It is in the fuel cell business. Hydrogen "power" is going nowhere. Ballard is kept alive only by subsidy. ENERGY is needed to make (electrolyze the water) the hydrogen needed to run the fuel cells. (You can also Google that. Also check out Brain Food.)

A guy falls off the top floor of a skyscraper. As he passes an open window on the 4th floor, someone inside hears him saying to himself "Hey, no problem so far."

AIM Calculator Price Range Calculation Feature for Percentage Price Move

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

AIM and Put Options

AIM and Puts -- For years I have heard of "protecting your stock position with Puts (put options)".

There are probably "millions" of books about options, but I came across "How to Make Money Trading Listed Puts" by Lin Tso. Dates from 1978 and only a few copies available used on Amazon. It's an excellent book with lots of examples, from just buying Puts to doing Put spreads.

How to Make Money Trading Listed Puts, by Lin Tso takes you to the Amazon info page.

A point of interest, p. 42:
"Trading for Down Fluctuations
Under the protective umbrella of a put option, one can play down fluctuations of the underlying stock.
This trading technique involves making a number of short-term transactions through buying the stock on dips and then selling the stock out on rallies. There is no limit to the number of trades that can be made against a particular put during the life of the option."

I don't know if Puts would be cost effective with standard AIM, as all or most of the $50 to $500 or so that a Put costs will usually disappear, so you have to make that amount and more on your AIM buys and sells during the life of the Put.

So, one of the more aggressive forms of AIM, like LD-AIM or ?? would be more suitable, if any at all are.

The Put would possibly solve one problem -- running out of cash for AIM Buys as the stock declines, as the Put would generate some on the stock price decline

And, again, volatility in the stock is needed, so that the AIM Buys and Sells within a range would offset the Put expiring worthless if the stock doesn't decline, or even rises.

Off the top of my head. Comments? Anyone played this?

AIM Stock/ETF Fixed Commission Transaction Calculator v7.2

The AIM Stock/ETF Fixed Commission Transaction Calculator v7.2 is now available.

In addition to the minor changes in v7.1 (see a previous post below),
a NET % and $ Difference pop-up display related to the current potential Transaction Price can now be toggled on the main screen.
This is in addition to the previous function of showing this information
for a RANGE of prices in the Price Range Calculation.

This is a text version of a typical popup you will see:

The proposed SELL Price of $3.080000
corresponds to a NET Price of $2.982639
The Previous NET Price entered is $3.771250

That is a NET Price difference of $-.788611
or -20.91%

The NET $ difference, based on 72 shares
is then $-56.77

You may also see some additional text if, as in this case, the
transaction is definitely not recommended:

NOT a recommended SELL transaction --
(A Sell, with % and $ NET Differences less than zero)

AIM program and contact information at:
AIM Stock/ETF Buy Low Sell High Transaction Calculator

What a Difference $1 Makes

A spreadsheet of Robert Lichello's "classic" 10-8-5-4-5-8-10 cycle can be downloaded through the link on the page AIM by-the-book classic buy low sell high spreadsheet study.

A modification using 10-7-5-4-5-7-10 gives nearly 50% better results over the same number of transactions, but at the expense of increased volatility and requiring ponying up additional cash during each cycle. (A "cash/total value" ratio of -4.55% near the end -- requires $27,339 to be added to a $600,821 account. The ending value, OTH, is +13.54% -- is +$196,399 cash in a $1,450,649 account.)

For a copy of the 10-7-5-4-5-7-10 spreadsheet, contact me through a contact link on one of my pages at AIM Core Position Trading.
Include "AIM spreadsheet" in your e-mail subject line.

AIM Stock/ETF Fixed Commission Transaction Calculator v7.1

The AIM Stock/ETF Fixed Commission Transaction Calculator v7.1 is now available.
This adds support for:
1) Larger transaction amounts and related values, such as PoCo, to 6 digits.
2) Additional paths to WordPad.
3) Some minor cosmetic changes.

Program and contact information at:
http://www.bean-d.com/cpt/aim-stock-etf-transaction-calculator.php
http://www.bean-d.com/cpt/aim-stock-etf-transaction-calculator.php

Any WordPad Problems with Your AIM Stock/ETF Buy/Sell Calculator Program?

I know of at least one instance where after doing a Price Range calculation, and you click on "Yes" to display the resulting list file (PriceLst.dat) in WordPad, nothing happens.

The file IS there; while not accessed automatically, it can still be accessed manually in WordPad or some other editor. But the convenience is lost. If this has been a problem, here is what you need to know.

First, questions for you to answer:

1) Do you have WordPad on your system?
2) Is it installed?
3) Where is it?

1) Do you have WordPad on your system?
WordPad is a standard application with Windows. Use the Taskbar Start Search function to search for "WordPad".
If you see in your Search Results file names like WORDPAD.EX_ (several files with a "_" as the last character of the file name extension), you have WordPad on your system.

2) Is it installed?
The next question is, is it installed? If so, you should see in your Search Results several WordPad file names with full 3-character file name extensions. These include EXE, CNT, FTG, FTS, GID, HLP, INF, and INI.

3) Where is it?
If installed, note the drive and directory where all the files named in step 2) are found.

Solving the Problem:

If you find files in 1) above but not in 2), then you have WordPad but it isn't installed. Do the Windows bit -- "Control Panel | Add or Remove Programs | Add/Remove Windows Components" -- and see if you can install it there. If that doesn't work, forget trying to get help from BillyBoy Microsucks Gates, just contact me (see below) and I'll send you a zip file with WordPad files in it.

The AIM calculator program v7.0 and prior looks for WordPad in the directory
"Program Files\Accessories" IN THE DRIVE FROM WHICH YOU ARE RUNNING THE CALCULATOR

Make sure there is a directory "Program Files\Accessories" in the drive from which you are running the calculator. If you are running from the C: drive, there may or may not be. If you are running from some other drive, there most likely WON'T be.

If necessary, create a directory and subdirectory "Program Files\Accessories" in the drive from which you are running the calculator. (Note that there is one space in "Program Files".)

If you have an installed version (file names have full 3-character file name extensions) of WordPad in some other drive/directory, COPY (don't MOVE) all those WordPad files to the "Program Files\Accessories" directory in the drive from which you are running the calculator.

If you had to get the files (zipped) from me, put the zip file in that directory and unzip it there. Run WordPad once from Windows Explorer that directory after unzipping it to see if it works. (If by chance it doesn't, contact me). Assuming it does work, then run the calculator program, doing a Price Range Calculation, and see if it works then. I'll assume it does, but if not, contact me.

To contact me, go to
http://www.bean-d.com/cpt/
http://www.bean-d.com/cpt/
and click on "Contact" near the bottom of the page. Make your e-mail subject line "AIM and WordPad:

AIM Stock/ETF Buy/Sell Transaction Calculator Updated

The AIM Stock/ETF Buy/Sell Fixed Commission Transaction Calculator Program has been updated to v7.0.

A major new feature that has been added is the ability to calculate the minimum possible AIM buy or sell transaction based on either a fixed dollar amount, a percentage of Portfolio Control, a percentage of the Stock Value, or on a percentage of the Total Account Value.

(Core Position Trading (CPT) includes the AIM method (Automatic Investment Management).

For details of the updated AIM calculator software program, see
http://www.bean-d.com/cpt/aim-stock-etf-transaction-calculator.htm
http://www.bean-d.com/cpt/aim-stock-etf-transaction-calculator.php

Effect of Commissions on Next AIM Buy Price and Amount

(Next SELL calculation results are similar, in the opposite direction.)

All calculations were made using the AIM Stock/ETF Buy/Sell Calculator Program.

Note that while these are the "first possible" transactions given the parameters specified, you may want to wait for a larger move from your last transaction and/or NET price.

======================
Blogger is not preserving the format of the AIM transaction calculation below, so see the FAQ at Effect of Commissions on Next AIM Stock/ETF Transaction Buy Prices and Amounts.

======================
Minimum Order: $120.00
Shares Held: 500
PoCo: $4000.00
SAFEs: 10%

Buy and Sell Commissions: $0 ("classic" or by-the-book [BTB] AIM)

Exact: Buy 17.38 shares at $7.05 (net price $7.05000)

Rounded: Buy 17 shares at $7.05 (net price $7.05000) <<-- Buy and Sell Commissions: $7.00 Exact: Buy 16.67 shares at $7.06 (net price $7.47988) Rounded: Buy 17 shares at $7.06 (net price $7.47176) Buy and Sell Commissions: $12.00 Exact: Buy 15.94 shares at $7.07 (net price $7.82280) Rounded: Buy 16 shares at $7.07 (net price $7.82000) <<-- Notice that while the transaction price difference between $0 and $12.00 commissions is only $0.02, the NET difference is $0.77 (11%). ====================== Minimum Order: $250.00 Shares Held: 500 PoCo: $4000.00 SAFEs: 10% Buy and Sell Commissions: $0 ("classic" or by-the-book [BTB] AIM) Exact: Buy 37.37 shares at $6.81 (net price $6.81000) Rounded: Buy 37 shares at $6.81 (net price $6.81000) <<-- Buy and Sell Commissions: $7.00 Exact: Buy 35.75 shares at $6.83 (net price $7.02578) Rounded: Buy 36 shares at $6.83 (net price $7.02444) Buy and Sell Commissions: $12.00 Exact: Buy 34.97 shares at $6.84 (net price $7.18314) Rounded: Buy 35 shares at $6.84 (net price $7.18286) <<-- Notice that while the transaction price difference between $0 and $12.00 commissions is only $0.03, the NET difference is $0.37 (5%). ====================== Blogger is not preserving the format of the AIM transaction calculation above, so see the FAQ at Effect of Commissions on Next AIM Stock/ETF Transaction Buy Prices and Amounts.

Other related articles are at the AIM Stock/ETF Trading Articles.

AIM Calculator Commission Default Settings

I noticed a $5.00 difference in the transaction cost of a stock BUY transaction the other day.

Good news, I was pleasantly surprised to see that Scottrade has reduced their LIMIT ORDER commissions to $7.00, to the same rate as their MARKET ORDER commissions.

With AIM, I am concerned with the NET transaction price per share, not just the order price.

AIM Fixed Commission Handling.

So this is good news.

I'm changing the default commissions of my AIM Stock/ETF Transaction Calculator from $12.00 to $7.00. Make sure your defaults are whatever your broker charges for limit orders.

(This is assuming you pre-calculate your buy and sell orders and put in GTC LIMIT ORDERS with your broker to sell some when the stock rises to your limit price, or to buy some when the stock declines to your limit price.)

BTW, I add a few pennies to the sell commission, as an estimate of what the transaction tax amounts to.

Hello -- Introduction

This blog will have notes and posts from me and users about the investing method described at Core Position Trading Overview.

About Buy Low Sell High with Core Position Trading (CPT)

Core Position Trading (CPT) as defined here is the buying and selling of increments of a stock, ETF, mutual fund, precious metals holding, whatever, with the object of increasing over time both the amount of the item and the amount of cash in the account dedicated to that item.

CPT is not an "all-or-nothing" method. Usually, a core position of the item is maintained at all times, and the buys and sells are usually of small amounts relative to the total holdings of the account.

Automatic Investment Management (AIM) is a CPT method popularized by Robert Lichello.

His book How to Make $1,000,000 in the Stock Market Automatically! was first published in 1977 and is now in its Fourth Revised Edition (December 2001). It's available on Amazon.com for about $8.00. [2009-06-20]

Don't let the "hokey" title put you off. It details his intriguing method of "forcing" you to "buy low sell high".

This blog and resources discuss the finer points of Core Position Trading, and especially of AIM as discussed and used by me and others.