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Pastimes : A001294

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To: Venditâ„¢ who wrote (40)6/21/2000 8:01:00 PM
From: Venditâ„¢  Read Replies (1) of 294
 
Well as far as price criteria it really shouldnt enter your thinking process ever with the exception of commission consideration. Here is why;

Trader Joe has $1000 to invest. He buys a stock which is currently selling for $10 a share. He can afford 100 shares plus his commission (say $20).

Trader Jane has the same $1000 to invest. She buys a stock which is currently selling for $50 a share. She can afford 20 shares plus her $20 commission.

Let us assume the (15%)math above holds true for both investments.

Each stock appreciates by 15% within a week.

Joe
100 shrs at $10 plus commission=s $1000
x15%=
____
$1115 less comission =s
$1095 or a gross profit of

$115

Now Janes investment;

Jane
20 shrs at $50 plus commission=s $1000
x15%=
____
$1115 less comission =s
$1095 or a gross profit of

$115

And on.........so what you want to focus on is volatility as well as a reliable indicator history when choosing a few stocks.

Both traders made the same dollar amount in the above example and you will find that larger cap .com and related stocks are more volalile in many cases.

Technical repeation as well as technical reliability is key.
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