Mickbaxter,
"Investors like me, those with a medium or long term view, can live with it by building up their stake using smaller buys."
EXACTLY!
The Jabawokker,
well your post certainly has some pertinent and accurate, comments about the possible risks of trading AIM stocks, but there is another side.
Just to confound you I have had an excellent year trading ONLY AIM stocks!
I am well in profit (over 200%!) and use the method Mick mentioned above, ie buying into companies as they start to rise, therefore reducing the risk until positive growth in the shareprice is shown.
I do agree with you that there is a much higher risk in AIM stocks, but i'm prepared to take that risk to try and achieve higher returns than I could possibly expect from FTSE 100 stocks.
If my gains are a result of being "shot and burned", long may it continue!