Commentary & Insights, Investing

Tragic! The 5 Most Common Ways to FAIL with AIM Investing

Posted at July 7, 2020 » By : » Categories : Commentary & Insights,Investing » 1 Comment

Let me give you some insights as someone who has been investing with AIM for over 30 years. In case you aren’t familiar, AIM is AUTOMATED INVESTMENT MANAGEMENT which was first developed by Robert Lichello in the 1970s.

AIM provides a scientific, safe, and reliable method to always BUY LOW, SELL HIGH, and EARN A LIFETIME of PROFITS from the ups and downs in the stock market that always happen.

After Robert Lichello passed away, the investment vehicle of LEAPS – Long Term Equity Anticipation Securities – were created. LEAPS are long term stock options. LEAPS are only created for established companies (thus they are much safer than investing in penny stocks). LEAPS have higher volatility and higher leverage than the stock they are based on. This means that once you know how to use a system like AIM where you profit automatically from the ups and downs in the market, AIM with LEAPS will create much greater profits for you. Finally, as long term options, you are never at risk of your options expiring – as long as you follow my rules of switching over your LEAPS at the end of every year when the next set becomes available.

Using my rules with LEAPS makes it just as safe as trading the stocks – but you have to know and follow the rules! (Not doing this is a guaranteed way to failure, as you will soon find out.)

For example, using AIM with the DOGS OF THE DOW JONES top 10 stocks from January 2014 through July 2020 would provide you with a 75% gain in your portfolio. Not bad considering that this includes the large dip from the Corona Virus in March 2020.

However, using AIM with the LEAPS from these same 10 companies would bring you a 594% INCREASE in your portfolio!

These numbers are shown every month in my monthly newsletter that my clients and newsletter subscribers receive. (Look for my free offers on my website if you want a free trial to this newsletter.)

But Jeff, you may ask – if these amazing results are possible, how is it possible to fail using AIM and LEAPS?

Many of my clients and friends have learned how to be successful with AIM. Here is a recent email I got from Tom M., one of my previous clients who still stays in touch with me:

I’ve written you several times over the years thanking you for AIM and more recently, for introducing me to LEAPS. The built in mechanism of using AIM with LEAPS is truly beautiful to observe. Ten days ago I established a position in [one company.] As you know, it has been extremely volatile but using AIM I was able to close my position today with a +24% increase in my portfolio value. The other two companies I have have increased in Portfolio Value +140% and +96%. Needless to say, I do not feel this would have been possible without you expanding my understanding of AIM and introducing me to the benefit of using it with LEAPS. Thank you! As always I look forward to the next newsletter. Tom M.

I wish I had more good clients and students like Tom! AIM is a great way to invest and fairly simple to use. But some investors make mistakes that cost them money. Here are the 5 most common reasons they have failed with AIM. Please learn from their mistakes so that you do not follow in their footsteps.

MISTAKE #1: NOT PLACING LIMIT BUY AND SELL ORDERS PROMPTLY

The prices of LEAPS can change quickly. Stock options are more volatile than the stocks they represent. This is true for both short and long term options. If your next buy and sell limit orders are not placed in your brokerage account to automatically trade when those prices are hit, you will miss your automatic trade!

One investor ignored my instructions to place a BUY for 10 contracts at $2.00 on IBM.

The IBM LEAPS was at $10. Then it dropped to $1.60. He missed the BUY! Then it went back to $4.60. A BUY then would still be profitable but he missed that too. He lost lots of money because he didn’t BUY LOW.

MISTAKE #2: BELIEVING YOU CAN TIME THE MARKET

Another mistake is thinking you can time the market. Several investors sold all their AIM holdings and are waiting for the market “bottom” to get back in. Well, history should tell you there is no reliable way to know when market bottom occurs!

I urge people to use my BEAR STRATEGY when the stock market is especially volatile – that way you never miss a good buy!

One beauty of AIM is that it automatically calculates your next BUY and SELL prices – and how many option contracts to place in that buy and sell. You don’t need to predict or wonder whether the market will go UP or DOWN! AIM has you covered in both directions to either BUY LOW or SELL HIGH! (Or do nothing – just as important! Don’t give money to the brokers making money on your commissions when you could be earning the profits or just enjoying life yourself.)

MISTAKE #3: SHORT TERM PANIC

Another mistake is short-term panic. Some investors want to get out immediately if their LEAPS drop even 25%. LEAPS are supposed to be volatile. They are supposed to go up much faster and down much faster in volatile markets – that’s why we like them! This volatility and larger swings gives you more opportunities to buy low, sell high, and earn more profits with each trade because of those bigger swings up and down.

Remember, AIM is a LONG TERM investing strategy. It is not a get-rich-quick scheme. I had some clients start with me and then the market took a big drop. They got nervous and quit. But guess what – the market came back! It always does eventually. They didn’t see their timing as a unique opportunity to BUY LOW. When the market rebounded they would have had many more LEAPS contracts to sell for more profits later.

MISTAKE #4: CLIENTS NOT REPORTING THEIR BUYS AND SELLS TO ME PROMPTLY WHEN THEY HAPPEN

When you hire me to help you learn AIM and calculate your next buy and sell limit orders, how can I do that if I don’t know you had a trade? It takes a lot of work on my part to correct a buy or sell that an investor discovered two months ago. They also likely lost a lot of money in the meantime from missing more trades! You saw that as another way to fail with AIM.

I have to check about 40 portfolios across all of my clients. You only have to check one so please help me and yourself by telling me all buys and sells the day after they happened. That way you will make my life easier and your profits higher. When you use a good online brokerage account they will send you an email or even a text whenever you have a trade so you never have to wonder when it happens.

MISTAKE #5: STRESSING ABOUT OR CHECKING YOUR PORTFOLIO EVERY DAY

The first A in AIM is AUTOMATIC. Some people never learn this. Maybe they want to be day traders instead. If that is you, don’t try to use AIM. You will fail. Or you will spend your day wasting time and stressing about your portfolio when you should instead be living your life and enjoying your life instead! Isn’t that what you would rather do while your portfolio is set up to buy low, sell high, and earn profits automatically?

The beauty of AIM is that you set all of your limit buys and limit sells ahead of time. Then wait for them to execute automatically. It is common for people to only need about 1 hour a month to check on their portfolio or update their next buy and sell limit orders whenever they have a trade.

(When you hire me as your teacher I spend a lot more time than that watching your LEAPS so I know if you are supposed to have a buy or sell, then helping you update your spreadsheet with your next buy and sell info.)

IN CONCLUSION

I hope learning about these mistakes from others will help you avoid them yourself. I also make mistakes, I admit, even though I have been doing AIM for over 30 years. I try to catch them quickly but sometimes don’t see them immediately. If you see I made a mistake that is good. It shows you understand AIM well and it helps me correct them.

If you want to learn more about AIM investing, take advantage of what you find on my website. You can use AIM with regular stocks (just like Robert Lichello did to eventually earn $1,000,000 as he wrote about in his famous book) but using AIM with LEAPS is the way to earn much bigger profits while still being automatic and safe when you follow the rules. Contact me directly if you want my personal help to get you started.

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.

About Jeff Weber

Jeff Weber is an investor, author, and former US Army auditor. He is on a mission to help as many people as possible buy low, sell high, and earn lifetime profits using the AIM system.

Comment

  • IDEL LACHMAN

    July 7, 2020 at 10:28 am

    Tragic! The 5 most common ways to FAIL with AIM Investing.
    I consider after reading Jeff’s 5 recommendations on how to successfully experiment without making AIM mistakes I come to the following conclusion:
    I consider that the basic thing is the DISCIPLINE followed by the CONSTANCE and to be ORGANIZED in your worksheets to arrive at the desired success. I congratulate Jeff on his enthusiasm and wish him to continue to be successful and thank him for the help he has given to so many people.
    Sincerely,
    Idel.

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