HOW IT WORKS 4 of 4
A Delicate Balance
Another benefit is that A[e]IM will balance your cash and equity positions based on the prevailing market conditions.
You'll find that when the market is relatively high, you'll be flush with cash - ready to buy when prices start to fall. When the market is relatively low, you'll be fully invested - ready for the upswing.
And that's exactly what you want. As prices fall, you want cash available to purchase shares at lower prices. As prices rise, you want to be fully invested to take advantage of the rising trend. Because of this, your risk is constantly minimized. A[e]IM ensures that's the case. Automatically!
You'll notice that you don't have to watch the market. In fact all you have to do is choose when to update your share prices.
A[e]IM removes all the emotion from your decisions and replaces it with a mechanical logic that's impervious to feelings of greed and fear.
As any professional investor will tell you, "emotions are deadly."
Multiple Stocks
A[e]IM works well with a single stock or a basket of stocks.
From its perspective, it sees cash and equities. Whether the equity portion is composed of one stock or many, doesn't matter.
And that's to your advantage because you're free to swap an equal value of one stock for another, at anytime. |