Companies that are looking for wider exposure to the market and that have expansion and leveraging plans and plan to plough the market for potential sources of equity funding may approach the Exchange for Listing. Hi elcoincollector, Mr. Lichello adjusted the equity:cash ratio to accommodate the raging bull market from 1982-2000 which in essence limited the amount of money in cash. Allocating at the 80:20 ratio is risky because when the market finally turns down and AIM issues a series of buy a signals you most likely will run out of cash and miss good buying opportunities. In one of my back tests, the stock was in an almost constant uptrend for years and when I compared my 50:50 AIM to a 100% Buy and Hold, the B&H scenario gave a much higher profit.
We are not trying to pick exact tops or bottoms, but I guess it would not be a great idea to start a new AIM program now, going very heavy on the stock side. Hi elcoincollector, you are correct, with the market at these lofty levels I would not allocate more than 50% of my money into a new AIM account. In this back-test the dividends were not reinvested but saved in the Money Market account to fund future buying. If you’ve never used a stock trading platform, you may be wondering about the differences between all the sites I just mentioned. Sean Hannity has often stated that the stock market is no longer a good investment.
OK, I see where the confusion is. First you are correct, to limit the buy/sell of small orders I put in the rule that if the current buy/sell order is not +/- 5% of the equity value then the market order would not be executed. Finally, if you have only a few dollars to invest, you may be looking for a more affordable method of purchasing company stock.
Regardless of whether you have two dollars or two million dollars to invest, the information below describes the three most common ways in which you can invest your money in the stock market. These sites charge roughly $10/trade; however, they offer many features and benefits that are absent in direct stock purchase plans. Announcer: Three years ago John McCain campaigned for George Bush’s plan to risk your Social Security in the stock market. Clearly Mr. Obama is suggesting the stock market is not a good investment for social security funds and perhaps not a good investment for you as well.
Institutional investors who spend their days studying and predicting market fluctuations may be able to play the arbitrage game, but for the retail investor who wants to invest in the market as a hobby or as part of a retirement plan, the best way to make money is be patient. Many investors operate under the assumption that making money through stock market investing is easy, but the truth is that it requires research, analysis and patience. From the mails I am receiving from my readers , I feel lot of first time investors entered in market during this period.