Losses versus gains

Discussion in 'Trading' started by wxytrader, Aug 19, 2024.

  1. schizo

    schizo

    You must be from Zimbabwe or something. Remember when Zimbabwe's stock market went up over a gazillion percent? It still meant nothing because that wasn't even enough to buy a toilet paper to wipe your ass.

    The reason people are so fixated (but nowhere near as you) on these "%" is because there's no easy way to communicate it to their dumbass lay readers. Now get over it.
     
    #21     Aug 20, 2024
    comagnum likes this.
  2. I don't think you are understanding the subject matter. A stock that drops from $10 to $5 can just as easily recover back to $10. The idea that it's somehow harder to recover because of the percentages is a complete fallacy.
     
    #22     Aug 20, 2024
  3. deaddog

    deaddog

    You forgot the GME position. :)
     
    #23     Aug 20, 2024
    taowave likes this.
  4. Sekiyo

    Sekiyo

    The fallacy is you using the word “harder”.
    I don’t know who said it’s “harder” but that’s not the point.

    The point is … if a stock halve then it has to double in order to recover.

    That’s it …

    How easy has nothing to do with percentages but apparently it was easier for the underlying to lose 50% in the first place than to double.

    A wise once said “There must be a reason for it to be a bargain” and a lot of traders bought cheap and sold even cheaper.

    But of course … there’s money to be made buying at a discount.
     
    Last edited: Aug 20, 2024
    #24     Aug 20, 2024
  5. A bargain is relative. Anyway if you see the link there are a lot of traders that believe this fallacy.
     
    #25     Aug 20, 2024
    Sekiyo likes this.
  6. GME still earning...I have a sep13 25 call that I collected $1400 opened on Aug13. It's currently up $543 but I want all of it!

    Btw my break even is now 25.38...I was originally assigned at 28 I think. See the system works :)

    P.S this isn't including the 16k I made in June...
     
    Last edited: Aug 20, 2024
    #26     Aug 20, 2024
  7. Peter8519

    Peter8519

    From a statistical view point, each trend has a life span and it is possible to scan the distribution of the trend life. Most trends tend to have a short life span.
    upload_2024-8-21_14-14-11.png

    The MGY trend that lasted 42 days and it ended in April 2024. In terms of probability, being patient, one can avoid entering trades with short trend.
     
    #27     Aug 21, 2024
  8. It sounds like Elliott wave is for you if interested in statistics. :)

    upload_2024-8-21_2-24-55.png

    3 wave was quite extended, so B could be 5 making A 4....since the 5 wave can be stunted when 3 wave is extended.
     
    Last edited: Aug 21, 2024
    #28     Aug 21, 2024
  9. Well I weathered that storm. :) Instead of closing for an 8-9k loss at one point I will be resuming the selling of calls on Monday as price should be around $20. My break even is currently 19.73. Even at these levels I can turn some calls for profits but I want to see what Monday brings.

    Remember I originally got assigned at 23!

    All I had to do was do nothing for barely 2 weeks while they went stop hunting lol....well I binge posted here and worked on my spreadsheet. :)

    upload_2024-8-23_10-51-55.png
     
    #29     Aug 23, 2024