game on, page-61

cheers trickydan

i get what your saying ... i have heard friends use the term free carry ... where you sell out to get your capital back.... and hold the remainder for profit.

i won't agree or disagree with your comment though:

"I have found that this is a way making my money produce more than "buy and hold"

as you have found it works for you.

Example 1.
my view is though now you have your capital back. for every 1 cents rise in the share price your 12305 shares will increase by $123.05. so when the share price goes up from 6.1 cents to 7.1 cents your $$ amount will be $123.05, and when the share price rises to 8.1 cents your $$ value if you sold would be $246.10.

.....................................

Example 2.
another example of not using free carry and buying and selling all shares:

you did the following:
Buy PEN 81970 @.061 5025.12
Buy PEN 81975 @.061 5025.42
Sell PEN 157425 @.064 10052.25

If you sold all 163945 shares at 0.064 = $10492.48
****$440 profit before brokerage ****

you did the following:
Buy PEN 163525 @.061 9999.97
Sell Pen 161692 @.062 9999.95

If you sold all 163525 shares at 0.062 = $10138.55
****$138 profit before fees****

you did the following:
Buy PEN 160888 @ .062 10000.00
Buy PEN 160888 @ .062 10000.00
Sell Pen 317824 @ .063 19997.96

If you sold all 321776 shares at 0.063 = $20271.89
****$270 profit before fees****

So if you bought and sold all shares with the numbers you provided, you would have $848 profit now.

How does this compare with the free carry shares if you held them all the way to 8.1 cents and make $246 profit?

.........................
Example 3.
now here is my example with your numbers:

Total shares bought:

Buy PEN 81970 @.061 5025.12
Buy PEN 81975 @.061 5025.42
Buy PEN 163525 @.061 9999.97
Buy PEN 160888 @ .062 10000.00
Buy PEN 160888 @ .062 10000.00

total share bought 649,246. im not sure how your finances are but as a minimum calc i will only use the 163525 @ 6.1 cents to continue my example first.

For 163525 shares, every 1 cents move makes $1635.25 when the share price goes up from 6.1 to 7.1. and your profit would be $3270.50 at 8.1 cents.


so if you no longer bought more PEN shares and only held your free carry shares to 8.1 cents you will make $246.10.

if you held the 163525 shares to 8.1 cents you will make $3270.50. which one looks better?


...................................

Example 4.
now another example using all shares bought assuming you have the capital to keep all of them:

649,246 shares gives you $6,492.46 profit at 7.1 cents and $12,984.92 cents at 8.1 cents.

...................................

hopefully all the above is pretty clear to understand.

i know that when you trade you can buy and sell a number of times and make more profit.... but how many tims would you have to buy and sell for 1/10th of a cent or 2/10th's of a cent to make as much as you can as shown in example 3 or 4?

but from the quick calcs i did with the different scenarios... for me personally i wouldn't use the method you use.

Now i don't want to sway you from what you are doing... as you have said your are happy with it and it works for you. And i wish you all the best and hope you make some good money.

now if my calcs are wrong please amend fellow readers :)