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Strategies & Market Trends : TA-Quotes Plus

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To: Nine_USA who wrote (8963)3/13/1999 7:15:00 PM
From: Richard Estes  Read Replies (1) of 11149
 
Stock splits should only effect a price level study. The present universal means of taking splits into account is the best means. the general correlation I have seen is the lower the price the more movement either way, then we are looking at risk.

A $10 stock going to $9 is 10%. The $100 stock going to $99 is 1%. Both are a move of $1. If we think in shares, a 1000 shares both lose a $1000. If we think in terms of money, investing $10,000 in both causes a loss of $1,000 or $100 perspectively. Part of knowing ourselves is knowing our comfort levels.

If the S&P is a ruler, how many beat it and at what price did they start? Traders require movement, direction is not important if they are on the right side of trade. If their skills allow them to play risker stocks, the return is higher. If safety is important, they might find comfort in less volatile stocks.

I am not questioning your system for you. But everything I have seen says the moves up come from the low side of price. I would think that the 10 to 30 might be a good price range.



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