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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?


To: FaultLine who wrote (1089)3/14/2002 7:28:54 AM
From: maceng2  Respond to of 1643
 
hmmm

For stocks that, on average, lose 1% per week, after one year

Without margin you still have 59.3% of your stock value left. (0.99^52)

With margin of 50%

losses = (1- 0.99^52)= 1 - 0.593 = 40.7%

40.7% of 1.5x = 61% losses

so you would have 39% of your stock value left.

Is that right? It certainly explains my portfolio :0)

Also, what happens if you also apply a 30% tariff? -g-

Would this mean you would only have 9% of your portfolio left?? This does entirely explain my portfolio -ng- :-)