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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: labestul who wrote (10405)3/9/2000 11:50:00 AM
From: Bernie Goldberg  Read Replies (2) of 18928
 
Hi Barry,
Let's start again with the parameters. All my computations are based on a trading cost of $12 per trade. Every thing else came from your figures.
TRADING EVERY OTHER WEEK
Trade#1-----150shares @$4.00----$600
Trade#2-----148shares @$3.75----$556
Trade#3-----166shares @$3.50----$580
Trade#4-----195shares @$3.25----$634
Trade#5-----237shares @$3.00----$710
Trade#6-----293shares @$2.75----$805
Trade#7-----370shares @$2.50----$924
Add to trade #7 42 shares with remaining $106 and we have purchased 1600 shares plus the the original 1000. This makes our average cost per share $4.28.

TRADING ONCE A MONTH (ONCE EVERY 4 WEEKS)
Trade#1-----150shares @$4.00----$ 600
Trade#2-----249shares @$3.50----$ 873
Trade#3-----373shares @$3.00----$1119
Trade#4-----569shares @$2.50----$1422
Trade#5-----464shares @$2.00----$ 939(that's all the $$ that was left)
We purchased 1805 shares plus the original 1000 for a total of 2805 shares. Our average cost per share is $3.56. Now all we have to do is wait for the price to increase to $3.60 to show a profit, albeit a small one. B&H at that point would have a loss of $1400.

Due to the short time frame used I did not take into consideration the interest earned on the MMF. At today's rates that would be about 5.5%
Hope this clarifies things.

Bernie
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