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Strategies & Market Trends : Stochastics

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To: R. Gordon who wrote (292)3/2/1998 11:53:00 AM
From: Jeff Jordan  Read Replies (1) of 927
 
Oh, just a small insight - you actually make a little more money going long than short. If
you buy at 5 and sell at 7 you have made 40% --- if you sell short at 7 and buy back
at 5 you make 28.57%.


Thats very interesting....I would have said you were wrong at first sight...but you appear to be correct? However! You don't make more money! Just the percentage is different. The profit is still the same... I can't explain it? Other than 7 is 40% greater than 5...5 is 28.57 % less than 7<g>

Jeff
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