Quick anotate question

[mattonline]

I was just reading through the journals and other threads on the forum and got a little confused.

YRCW
Drtn: Short
Entry: 14.78
Date: 18/01/2008
Disaster Stop: 16.27
Qty: 320
Cost: $4,729.60
Exit: 16.27
Date: 23/01/2008
Return (pts): -1.49
Return (%): -10.08%
Return ($): -$476.80

I can understand parts of this but one of the things i dont get is why this person has an entry point of 14.78 and a disaster stop at 16.27, shouldn't the disaster stop be something lower like 13.78?? and the selling point be 16.27 giving a ratio of (1.10) He has put the exit point 16.27, so why is the disaster point 16.27?

also i'm not 100% sure what these figures mean

Return (pts): -1.49
Return (%): -10.08%
Return ($): -$476.80


Thanks in advance

 

[Bagehot]

I was just reading through the journals and other threads on the forum and got a little confused.



I can understand parts of this but one of the things i dont get is why this person has an entry point of 14.78 and a disaster stop at 16.27, shouldn't the disaster stop be something lower like 13.78?? and the selling point be 16.27 giving a ratio of (1.10) He has put the exit point 16.27, so why is the disaster point 16.27?

also i'm not 100% sure what these figures mean

Return (pts): -1.49
Return (%): -10.08%
Return ($): -$476.80


Thanks in advance

LOL. Looks like it turned into a disaster for whoever did the trade. It was a short, and the stock went up and hit the stop. Hence negative returns in percent and absolute terms.

Seeing your signature reminded me of George Bush's line: 'you know the problem with the French? They don't even have a word for entrepreneur'

 

[mattonline]

So i guessed the negatives were losses, but i see the disaster stop higher than the entry on many posts here, and i get confused why?

Entrepreneur is frech?

 

[Bagehot]

So i guessed the negatives were losses, but i see the disaster stop higher than the entry on many posts here, and i get confused why?

Entrepreneur is frech?

because they're shorts - the price needs to go down to make money. If it goes up you lose money and get stopped out.

Entrepreneur is French? You could have a future as leader of the free world if trading doesn't work out

 

[mattonline]

because they're shorts - the price needs to go down to make money. If it goes up you lose money and get stopped out.

I don't understand , whats a short?
why does the price need to go down to make money? surely you would lose money? ask i thought he bought the stock at 14.78 and if it went down to say 12.78 he would of lost money, am i right or just getting confused?

 

[Bagehot]

I don't understand , whats a short?
why does the price need to go down to make money? surely you would lose money? ask i thought he bought the stock at 14.78 and if it went down to say 12.78 he would of lost money, am i right or just getting confused?

The entry "Drtn: Short" is a clue. He's short selling - selling stock he doesn't own to buy it back later at a lower price to make money. Hedge funds, long/short strategies, ring any bells? Google it or search on T2W's resources for more information.