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Strategies & Market Trends : Roger's 1997 Short Picks

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To: craig crawford who wrote (9148)12/30/1997 10:54:00 PM
From: Mama Bear  Read Replies (1) of 9285
 
If I have $10000 in my account, and sell $20000 of stock, I have $30000 in my account. If the stock goes to 0, and I never have to pay back the loan, I will have $30000. It is indeed a 200% return.

If when the stock value falls to $10000 I short more of the same stock with my profit, I have initiated a new trade, and any return on the new trade should be calculated independantly of the previous trade.

200% is the maximum return.

Barb
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