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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: quote 007 who wrote (6094)	2/10/2000 7:33:00 PM
From: Daveyk	Read Replies (1) \| Respond to of 9427

Stuart,where do you find "The Traders Corner?"TIA Dave

To: quote 007 who wrote (6094)	2/10/2000 9:24:00 PM
From: Tommy Dorsey	Respond to of 9427

Stuart I forwarded that to sue,she does that page. she will answer on SI. t

To: quote 007 who wrote (6094)	2/14/2000 4:39:00 PM
From: Tommy Dorsey	Read Replies (1) \| Respond to of 9427

Dear Stuart, Sorry I am just responding today. I tried to respond on Friday but had trouble with my password. With the percent risk model, you take 1% of the total value of your account, let's say marked to market on Friday night it was 1,000,000. Then you say 1% of 1,000,000 is 10,000. This is what you are risking per trade, and you need to know this number to figure out how many shares you buy. If you are buying a stock at 50 and the stop point is 45, you are risking 5 points to the stop. So then you take 10,000 divided by the 5 point risk, and it means you buy 2,000 shares for that particular trade. 2,000 x 5 = $10,000, the amount you are willing to risk on the trade. But the amount invested in the position is 2,000 x 50 = $100,000. So in the Apple example I bought 4439 shares because: Stock was at 90 1-4 Stop= 87, so risk to stop = 3 1-4 Value of account at the time = 1,442,675.00, so 1% = 14,426 14,426 divided by 3 1-4 risk to stop = 4439 shares to buy But investment in position = 4439 x 90 1-4 = $400,620 I hope this helps explain your question. Regards, Susan Morrison Dorsey, Wright