ship jump, page-11

Unsinkable - don't be so patronizing! I know more than enough about shares, and have been trading them very successfully for a long time, thank you.

Of course it's all about percentages, but the point I make is that a cheap share is more likely to move by a bigger percentage in any given time frame. This is indisputable.

The extreme example would be a 1 cent share moving to 2 cents - it has moved 100%. And cheap shares do exactly that. When was the last time you saw RIO, IPL, or even BHP move even 10% in a single day?

NCM is NOT as likely to go up by $1 as LGL is to go up by 10c - fact of life.

So, a 10% move is a 10% move, regardless of the share price - agreed. But the cheap shares will move by bigger percentages, and you can buy more of them for the same money. That's called leverage, and I have been doing exactly that for a long time. It is also the reason that Twiggy Forrest split FMG shares by 10:1 - a very smart move, with predictable results. If his shares were still in the "old money", they would be $73 now instead of $7.30, and they sure wouldn't be moving $20 within a day, that's for sure. But at $7.30, they've moved between 7.20 and 7.40 today alone. The leverage principle at work.

So - yes, percentages are the same, regardless of share price. But cheaper shares move by bigger percentages. Fact - check the charts...