Just goes to show you the intellectual capacity of those who pretend to be "traders" these days. This was taken from the appl board on finance yahoo. Post was made by someone who has a pretty big following on the board. "Don't belive all the trash talk that come from shorts. The majority of them don't even have a short position, there are here for the fun of it. Very few of them realize that the maximum profit you can make from a stock is 100% and that is ONLY if the stock goes to zero. but yet they claim to have made a "ton of money shorting this POS" while we are only 25% off the high, and yet we are 80% from a year ago and over 1000% from 5 years ago." Anyone who can figure out whats wrong with his assumptions gets a share of GS at 216.
Wow! I was just thinking, if someone registered on ET in June 2006 and has posted, lets say, about 2912 times since then, that would mean he posts here an average of about 7+ times a day, EVERY DAY, including weekends and holidays. But NOBODY would actually waste their time doing that! Right?
typical really, stock goes down, blame the shorters. thought this was about some under $5 stock until seen it was about apple.
If I short a stock at $100 and buy it back at $10, I made a 900% return on my investment. Now, where is my GS?
you would not be able to short $100 stock with $10 cash, so your maximum is 90% in this case unless you go 2:1 leverage then its 180%
"Very few of them realize that the maximum profit you can make from a stock is 100% and that is ONLY if the stock goes to zero." You could pyramid and short more as the stock declined (theoretically) ie adding to your position. If the stock went bk, I don't think you would have to cover and pay taxes.
Or we can just do this in a hypothetical market: Short apple when its 200 with 10,000 dollars. Apple goes to 100. Made 5,000. Now, take all the money out, and short apple again at 100. Apple goes to 50. Made 7,500. Total is now 22,500. Ect, in a hypothetical of course.