Automatic Investment Management
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Automatic Investment Management (AIM) is a long-term investment strategy developed by Robert Lichello in the 1970's in response to the 1969-1974 bear market. Fully described in his book "How to Make $1,000,000 in the Stock Market Automatically", now in the Signet 4th edition (ISBN 0451204417), it offers a proven, systematic way to build wealth in the stock market, especially compared to a buy and hold strategy. Applying a systematic mathematical algorithm, it removes the emotions from stock market investing by calculating exactly how much to incrementally buy or sell, and when, in reaction to the movement of the investment's price. It is applicable to individual stocks, mutual funds, bond funds and exchange-traded funds. By keeping a cash reserve it allows an investor to buy more shares on a price decline, then sell some for profit during a later price rise. Thus it allows an investor to implement an effective methodology of the Wall Street maxim, "buy low, sell high."
Tom Veale has been using AIM strategy since the 1980's and has developed a comprehensive website that discusses Automatic Investment Management in greater detail, both in theory and implementation to one's portfolio. This can be found here: AIM Users
