SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Dead Cat Bounce Theory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: stockvalinvestor who wrote (69)3/21/1997 12:45:00 PM
From: Iceberg   of 1836
 
>there is no assessing for transaction costs and bid-ask spread costs.

kenneth,

Transaction costs and bid-ask spread costs are common to any stock transaction. Why does there have to be any assessment of these costs at all relative to your theory? Are they relevant to your theory at this point in time?

It seems to me that your theory is either valid, or it isn't valid, based upon gains/losses relative to entry and exit prices alone...then once the theory is established, overhead can be applied. Any stock transaction has overhead costs--so why get all worked up about it if you are trying to simply ballpark your theory? I'd just leave it entirely out of the equation at this point. In other words, establish your theory as one entity, then assess the overhead as another entity at a later date. Just a thought. What do you think?

Ice
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News