GDN 0.00% 1.7¢ golden state resources limited

stop losses and a bit of panic, page-31

  1. 165 Posts.
    warnie

    you can't make the gain disappear

    put some numbers behind it and it'll make sense - eg
    you buy 10,000 @ 5.00 = 50,000

    in 4 weeks your parcel is worth 75k - sp must be 7.50

    market value is therefore 10,000 @ 7.50 = 75,000

    you've made a 50% gain

    whatever qty you sell, you've got a prima facie gain of 50% on the amount sold

    if you sell a $50k in value now, you've sold 6,667 shares
    shares ie

    6,667 @ 7.50 = 50,000 disposal proceeds
    6,667 @ 5.00 = 33,333 cost
    gain is therefore 16,667 or 50%

    cheers

    MK

 
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