SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?


To: George Statham who wrote (1459)9/21/2006 7:07:12 AM
From: steve harris  Read Replies (2) | Respond to of 20435
 
I understand your examples but that is different. You're assuming the same one item changing over two different time periods.

I started out with $50 CRUS and $50 FDRY. I have not made any trades. One went up 17% and the other is down 7% over the same time period, starting with equal amounts.

Try is this way:
Let's say CRUS has went up 50% since the game started to $75.
And FDRY has went down 50% since the game started to $25.
50% up plus 50% down equals zero change which is correct because I would still have $100 I started with.

Or CRUS went up 100% and FDRY went down 100%. CRUS would be at $100 and FDRY would be $0. I'd still have the $100 I started with and a zero % change.

Or CRUS went up 30% to $65. And FDRY went down 30% to $35. Up 30% and down 30% for zero % change is right because I would still have the $100 I started with.

So, if the two above examples are correct, then what's the difference between down 7% and up 17% not equaling 10%?
:)

Elroy, your math is broken, I demand I be listed with an account value of $110!!
lol



To: George Statham who wrote (1459)9/21/2006 5:39:36 PM
From: Casaubon  Read Replies (1) | Respond to of 20435
 
they would have zero percent gain.

start with $100K: After one year you would have $200K (100% gain). After the 50% loss the second year, you would be back to $100K (because 50% of $200K is $100K).