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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: If only I'd held who wrote (37884)6/7/1999 8:58:00 AM
From: Joe Copia  Respond to of 122087
 
Your analysis is correct.



To: If only I'd held who wrote (37884)6/7/1999 9:01:00 AM
From: eims2000  Respond to of 122087
 
If,

Thanks for addressing that one, I wanted to but I think I have done enough:) By the way, my profit at the end of the year dictates how I trade, and I would rather make 10%-25% repeatedly and consistently than make 200% one day and the loose 50% each the next two days.

rhansen



To: If only I'd held who wrote (37884)6/7/1999 3:32:00 PM
From: TripleT  Read Replies (2) | Respond to of 122087
 
Your analysis is true only in as far as it goes. If, for instance, a person set ups a margin account with cash to be used only for shorting, the profit could approach 285%. Consider a stock worth $10.00 per share. My broker would require $5 per share to short this stock from up-front money. Consider the following two examples:

1) If the stock drops to $5, then my profit is 100%.
2) If the stock drops to $0.00 then the profit is 200%

Once a stock is shorted, the broker only requires residual margins of 35% giving a possibility of 285% profit (dangerous, very dangerous). Stock costs $10. Requiring $5.00 up-front money and an investor may short more stock, leaving only $3.50 per share margin (cash in his account). Provided of course, that he enjoys skating on thin ice.

OK Ok so it requires you change definitions a bit. But what I consider in any small business is cash flow. Long live the king.

Happy skating, all. :^)

TTT