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--- In realtraders@xxxx, DH <catapult@xxxx> wrote:
> > For your information, I trade "nasdaq stocks" only and I use
NASDAQ
> > index as the floor map for my direction and the "36%"is true and
I
> > was in RBAK stock and I covered my short today before the close.
>
> Haytham, that was a nice trade but your credibility would be higher
if
> you worked on your math.
>
> RBAK
> Date Open High Low Close
> 5/9/01 20.02 22.09 19.82 21.24
> 5/10/01 22.1 22.1 19.5 19.5
> 5/11/01 19.11 19.11 15.9 16.4
> 5/14/01 16.3 16.31 15.45 16.02
>
> Let's assume (best case) you sold the high on 5/9 and bought the
low on
> 5/14.
>
> (22.09 - 15.45)/ 22.09 = 30%
HA: In fact the biggest short position was taken short @21.20 got out
@16.06 at market (21.20-16.06)/21.06= 5.14/21.20= 24% there is other
smaller positions taken with total of 36% but even considering 24%
with margin it become 0.24x3.3= 79.2%
>
> Worst case, you made just under 18%.
>
> Perhaps that 36% is return on margin? Of course, we don't want to go
> there as we all know the kind of margin available on the futures.
For
> example, my little mini S&P trade netted 69% on margin.
>
> 59.25 * 50/4,313 = 69%
HA: I foregot the margin, I was on margin(30% equity and 70% margin)
that will make profit percentage 3.3 X 0.36=118.8%
>
> Enough of this, I'm done. My point to the newbies out there is don't
> take anyone's (mine or anyone else's) claims on faith. Check the
facts
> for yourself. There are a lot of charlatans in this business. When
> somebody tells you something WILL or MUST happen in the market,
with no
> uncertainty whatsoever, walk away. An experienced trader knows
better
> than to make such claims and a smart new guy knows better than to
listen
> to them. NOTHING is certain in the market.
HA:certainty come of what explain in my previous message:"If your
conviction is "very strong" and market did not meet your conviction,
you will know with certainty what is going to happen(take the other
side immediately)"
Haytham
>
> --
> Dennis
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