Friday, January 02, 2015 4:12:53 AM
Hi Clive, I don't get it. Since the TEST position is valued at $10,000 for 100 shares then a percentage of stock value and the percentage of portfolio control should be the same for the initial trade, I would think. Additionally the label says it is Portfolio Control in the first box:
Also looking at the figures again, it does not make a lot of sense. There is only a 20% Hold Zone for the online calculator when I use the 1 share (1%) minimum trade like in Newport, but if I make it 5% the calcs are about the same as Newport, Sell = $117.65, Buy = $86.96.
I confess to being quite puzzled why division is used instead of multiplication. So I looked up the "proper" way to calculate this and came up with the same approach I've always used. Plus, using the calculator at http://www.calculatorcat.com/free_calculators/percent_gain.phtml it says that it is 13.04% down from 100 to 86.956 and from 100 to 117.647 it is 17.65% up.
However, when you turn the figures on their head and calculate what percentage you would need to increase $86.956 to 100 it is 115% - 15% of 86.956 is 13.043 and add them together to get 99.999. The same happens going the other direction. To decrease 117.647 to 100 you use 85% or subtract 15% - 15% of 117.647 is 17.647 and subtract from 117.647 you get 100.
Sure not the way I was taught, nor the way the calculators on the net work. Even ads in the newspaper touting great sales do it the way I've always done it, I just checked.
It probably doesn't really matter. I wonder if Lichello did it the same way as Newport. I'll have to look it up, but not now. I'm off to the land of nod.
Best,
Allen
Also looking at the figures again, it does not make a lot of sense. There is only a 20% Hold Zone for the online calculator when I use the 1 share (1%) minimum trade like in Newport, but if I make it 5% the calcs are about the same as Newport, Sell = $117.65, Buy = $86.96.
I confess to being quite puzzled why division is used instead of multiplication. So I looked up the "proper" way to calculate this and came up with the same approach I've always used. Plus, using the calculator at http://www.calculatorcat.com/free_calculators/percent_gain.phtml it says that it is 13.04% down from 100 to 86.956 and from 100 to 117.647 it is 17.65% up.
However, when you turn the figures on their head and calculate what percentage you would need to increase $86.956 to 100 it is 115% - 15% of 86.956 is 13.043 and add them together to get 99.999. The same happens going the other direction. To decrease 117.647 to 100 you use 85% or subtract 15% - 15% of 117.647 is 17.647 and subtract from 117.647 you get 100.
Sure not the way I was taught, nor the way the calculators on the net work. Even ads in the newspaper touting great sales do it the way I've always done it, I just checked.
It probably doesn't really matter. I wonder if Lichello did it the same way as Newport. I'll have to look it up, but not now. I'm off to the land of nod.
Best,
Allen
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