The Improvements to AIM Become a Book – Part 2
(If you missed Part 1 of this story, please click here)
Now I had 75 AIM spreadsheets in front of me and started trying to organize them. I put oil stocks together, casino stocks together, etc. As I looked at these sheets, ideas for chapters started coming to me.
First of all, I was a member of Merrill Lynch Blueprint, one of the first discount brokers.
Since investors in the real world must pay commissions, I decided the stocks I charted would include commissions.
Lichello’s book never showed the effects of commissions!
Investors would want to know if the system was still profitable after paying commissions.
Since you can’t do AIM without having an account with a broker, Chapter 1 would have information on stockbroker costs. I have updated this over the years.
I would tell investors how to find a good stockbroker. One important criteria is finding an inexpensive stockbrocker. Investors needed information on how to keep commission costs as low as possible. The right broker would be extremely valuable to investors.
I’d show investors how to do AIM using a real stock for three years. That would be much more realistic to an investor. AND they would see AIM in action. I picked a typical stock; one that went down and then came back up.
That would introduce the investor to the scenario they’ll experience when they do the system for real. It will show them how to have faith in AIM.
I decided another chapter would be books on investing motivation so investors would understand the psychology of investing.
One big reason AIM works well is that many investors are like Star Trek’s “Bones” McCoy. He is very emotional. Not like Spock, who is very logical.
So in the hour of emotion when they might be weakening; I wanted to provide examples of how to think successfully and logically.
Investors had to remain logical and clear headed so they can follow through and do what AIM tells them to do: Buy Low and Sell High!
I wanted a chapter on investing book related to AIM and other great investing books. I wanted investors to know of books like Charles Mackey’s Extraordinary Popular Delusions and the Madness of Crowds written over 150 years ago but still absolutely correct about investors going crazy over investments like Tulips.
Then investors would see why AIM works and have more confidence that human nature is unchanging and will make them rich.
While doing stock research I came across an article in an ad entitled: Seven Rules for Success in the Stock Market. Since AIM answered these seven rules so successfully, I added it to the book.
I included a chapter on how I was doing with AIM. I thought it was only fair to show investors how I was doing under AIM. Was I practicing what I preached?
This would accomplish two things: – give me credibility (I wasn’t preaching from an ivory tower, I was down in the trenches). It also allowed me the chance to illustrate different levels of risk among stocks.
I decided to add a chapter on how the system would work with the three basic types of stocks. From my 75 spreadsheets, I noticed I had three spreadsheets that were perfect examples of the three types of stocks that exist. (Don’t know what those 3 types of stocks are? It’s in Chapter 7 of my book here.)
I wanted to explain the stock that always went up, the stock that always went down, and the stock that fluctuated. Lichello’s book never mentioned how AIM works with different types of stocks.
I showed investors how AIM could really be your friend if you made a mistake and picked a bad stock or option. I showed investors how to be patient and added my improvement to let investors get out of a bad stock and only have a small loss or a profit anyway.
Also I showed investors they would have lower profits with a stock that “always went higher” than a “Buy and Hold “ investor,
They would still do quite well — they would have greatly reduced risk because they would have sold a large portion of shares while the “buy and hold” investor still had all their money at risk. These latter investors only had a “paper profit.” When that stock came down to earth (as they all do eventually!), those investors would see how AIM would really help them.
I would show investors that the vast majority of stocks fluctuate – they go up and down. AIM was perfect for making the most profits from these type stocks…another warm fuzzy. And since a graph was worth a thousand words, I made another improvement on Lichello’s book and included several graphs.
Next would be a chapter on how to pick the best stocks for AIM. Then later in the book – how to use long-term options (LEAPS) for AIM. I was upset when Lichello stated “Do not expect any stock tips”. That needed to change if an investor was really going to put AIM into practice.
If I picked up a book on investing, I’d want lots of tips on picking good investments for AIM. Since a book will never stay current on stock prices, I would only give ideas on the best types of investments for AIM. (The old story of teaching someone HOW to fish, not just giving him a fish for one day.)
Later on, I would start a newsletter listing current stocks and LEAPS I like. (Fast forward, my newsletter has been published for over 25 years!). With the monthly newsletter, investors will have the latest ideas on the best investments for AIM every month.
As you can see, there were many reasons why an updated book on AIM investing was calling out to me as desperately needed. For the exciting conclusion to the story, move to Part 3. (If you want to jump ahead to the finale, you can see it here.)
Thanks for your desire to learn how you can succeed with the Automated Investing Method. I’m on a mission to help as many people as possible benefit from the AIM method. Get in touch with me so you can get the help you need to buy low, sell high, and earn profits over a lifetime.
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.