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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: Bald Eagle who wrote (84213)1/3/2000 8:02:00 PM
From: Carl van Rooyen  Read Replies (3) of 90042
 
<A point gain on a 50 dollar stock is obviously not the same gain as a point gain on a 10 dollar stock.>

When a stock ticks up one point and you are long 1000 shares, you have a $1000.00 pretax profit. This is true if it's Berkshire Hathaway or any other stock. I personally think one loses focus by watching percentages. I like to think about every trade in terms of dollars, which is why points make the most sense, IMO.

Taking it one point at a time is an excellent strategy. There are no regrets in profits, especially one point at a time. As Tim has indicated to the thread, it is assumed you are trading in 500 and 1000 share increments. Anything less makes short term trading too difficult.

If you're unable to negotiate the daytrade calls in 500 or 1000 lots, you really are better off with position or longer term trades where more points can be gained over time. But definitely don't choose those types of investments off the daytrade calls.
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