Short-term and Long-term AIM Trading
Are you always looking for new ways to use AIM investing to make the highest profits in your investing portfolio?
That's what I do!
A client of mine recently gave me an idea for a great way to use AIM to achieve higher profits. I will tell you about it here.
You hear me saying AIM is a long-term investing method, and it is. But there is more than one way to skin a cat – there are ways to have your cake and eat it too!
Here is what my AIM investing client told me: his portfolio was up $9,800 yesterday. Then today it is down $8,000.
"I am trying to figure out what to do when the market whipsaws me up and down," He said.
Then the lightbulb above my head flashed on!!!
Do both short-term and long-term trading with AIM!!!
Here’s what I mean:
I told him this is what he should do: when his portfolio was up $9,800, wait until 5-10 minutes before the stock market closes for the day. Make a market sell on all of his LEAPS contracts to lock in those profits right before the stock market closes.
Then see what his total money amount is after his sale. Divide that by 2 to figure out how much money you need to make a new limit buy order. It will probably be on the same LEAPS but at a different - lower - Strike Price.
Now you wait for your order to fill - automatically (that is the "A" in AIM). You will choose a Strike at or near the money. You can place limit orders anytime whether the stock market is open or not.
Keep repeating this formula! Now you are doing AIM short-term and long-term. I think you will make even higher profits long-term and you are still faithfully following the AIM Prime Directive “Buy Low Sell High!
This strategy applies for all LEAPS you own. Let's say your AAPL LEAPS - or any other LEAPS - suddenly has a great day, and you find your AAPL portfolio value is up $10,000.
You will have a regular AIM sell of, say 4-5 contracts, and still own say 15 contracts.
Instead of just figuring out the next regular AIM limit buy and sell I would tell you to sell all 15 contracts to lock in the profits, ideally 10 minutes before the stock market closed.
Then after I know that sell price for all 15 AAPL LEAPS, I would figure your next limit buy and at what Strike Price - probably on the same stock you just sold.
Now you know a way to maximize your investing portfolio profits with both short-term and long-term AIM trading.
Does this make sense to you?
Leave a comment below to let me know. Or you are invited to contact me through my email or other ways you can find on my website.
Sincerely, Jeff
DISCLAIMER:
Jeffrey Weber is not an investment adviser and gives only his personal view and opinion, never making any investment advice or recommendation to buy or sell specific securities. Investors in financial assets must do so at their own responsibility and with due caution as they involve a significant degree of risk. Before investing in financial assets, investors should do their own research and consult a professional investment adviser.