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To: Jock Hutchinson who wrote (9470)	2/4/1998 10:37:00 PM
From: DavidG	Read Replies (2) \| Respond to of 25814

Jock, I I loose fifty dollars or fifty percent on a one hundred dollar stock, I must realize a gain of one hundred percent just to break even. If I first make a fifty percent gain on a one hundred dollar stock and then loose fifty percent, I am now at seventy five dollars, and I need a gain of thirty three percent to break even. If I loose fifty percent on a one hundred dollar stock and then gain fifty percent back I will be at seventy-five dollars, and if I then loose at fifty percent of that and gain fifty percent back, I will basically be at fifty dollars. So it depends on whether you loose first or gain first as to whether a loss of fifty percent is twice as painful as a gain of fifty percent. One thing is for sure... following your example is "twice as painful"<ggg> When you are looking at the % gain and % loss.... it is true that the magnitude of the % is different for each...but that is where it ends... the actual gain and loss is still the same... and therefore.... the risk of going up or down is actually the same. I think you are letting the increase and decrease in percentages confuse you...Maybe from a psychological viewpoint it feels more painful. DavidG

To: Jock Hutchinson who wrote (9470)	2/5/1998 1:48:00 PM
From: Beachbumm	Read Replies (3) \| Respond to of 25814

Jock, I just don't think we can trust you with the percentages when you obviously don't know the difference between "lose" and "loose"!! Anyway, it is a little disingenuous to bandy about these percentages because, obviously, money has a certain value of purchasing power. To lose (NOT loose) 50% of one dollar is not the same thing as to lose 50% of $100. So gaining 100% on $50 does not involve so much purchasing power as gaining 100% on $100. I would compare this dilemma to that of the flat tax. A true flat tax of 10% on an income of $100,000 is not the same burden as a true flat tax of 10% on an income of $10,000 because of the worth of money. Now that I have completely stirred the pot, I swiftly exit. Beachbumm