04-16-05 07:38 AM
Hi everyone,
I am finding keeping this journal is proving to be very beneficial for me. I am learning allot about the strengths and weaknesses of my trading style. I hope you are finding things a bit more interesting now that I am putting a few charts on with my new trades.
It is a tough market and I am finding as my system is long based I am suffering, however I will continue to develop My trading and hope you follow me all the way.
all the best
Hi everyone,
I am finding keeping this journal is proving to be very beneficial for me. I am learning allot about the strengths and weaknesses of my trading style. I hope you are finding things a bit more interesting now that I am putting a few charts on with my new trades.
It is a tough market and I am finding as my system is long based I am suffering, however I will continue to develop My trading and hope you follow me all the way.
all the best
Airthrey Capital
Well-known member
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wwatson1 said:
WWatson.....
I suggest that you should pay a little more attention to mathematics.
I refer to your web page below.....
http://www.800bull.com/performance feb05.htm
You claim that in Feb 05 you achieved a monthly total return of 57.83%.
In fact, you achieved only a 4.06% return. Don't get me wrong, a 4% monthly return is good. But it certainly isn't as good as the 57.83% you are claiming.
For you benefit, and those who failed their maths GCSE, I attach the correct calculations.
You are only fooling yourself that you achieved a return more than 14 times than you actually have.
Hi airthrey, The problem Is that the stocks I am working with dairy greatly in price.
If you where to invest $5000 in SCLN at $3.11 you would could buy 1600 shares, the stock went up $0.27 you would make aprox $430.
If you where to ivest the same $5000 in OMM at the time of reccomendation at 19.15 you would get 260 shares. The stock inreased by $1.75 making you aprox $457.
I am focusing on the percent gain/loss of each individual position. What you have done is add up the points and said this is 4% which is correct had you been buying a set amount of shares per position, say 200.
Let me know your thoughts.
Best regards wwatson.
If you where to invest $5000 in SCLN at $3.11 you would could buy 1600 shares, the stock went up $0.27 you would make aprox $430.
If you where to ivest the same $5000 in OMM at the time of reccomendation at 19.15 you would get 260 shares. The stock inreased by $1.75 making you aprox $457.
I am focusing on the percent gain/loss of each individual position. What you have done is add up the points and said this is 4% which is correct had you been buying a set amount of shares per position, say 200.
Let me know your thoughts.
Best regards wwatson.
Airthrey Capital
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wwatson1 said:
Hi wwatson1,
Happy to give you my thoughts........
Yes, I have taken the assumption that an equal number of shares is purchased in each transaction.
However, your calculations regarding total monthly % returns are still wrong.
Take the 2 examples you give above.....
1) Invest $5000 in SCLN.......Realise $5,430 from sale.........8.6% profit
2) Invest $5000 in OMM.........Realise $5,457 from sale.........9.1% profit.
According to your website, you would calculate your total return of the above 2 transactions by adding both % gains together, giving a 17.7% return. That is incorrect.
The correct total % return of the 2 transactions above is in fact only 8.87%.
Just to prove it......
3) Total investment $10000.....Realise $10,887 from sale......8.87%
Basically, you cannot get the correct monthly % return simply by adding together the individual % gains of each transaction together, as you have done on your website. The figures are therefore incorrect and misleading.
Airthrey Capital
FetteredChinos
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keep it going mate. slow and steady wins the race.
should get a market wide bull run for the next few weeks, so with any luck your returns should improve further.
good trading
FC
should get a market wide bull run for the next few weeks, so with any luck your returns should improve further.
good trading
FC
roguetrader
Senior member
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wisestguy said:
Didn't reply to this earlier as I didn't want to turn your thread into an aguement. But you seem to be doing just fine to me.
Lets see how things pan out. I have started putting charts and explanations on my home page if you click the symbols.
I have had problems with my computer recently be have sorted things out. I should be able to concentrate fully on trading and my journal now.
All the best wwatson.
I have had problems with my computer recently be have sorted things out. I should be able to concentrate fully on trading and my journal now.
All the best wwatson.
