HSX Forum

Movies

Reply Topic List All Forums

The Rule of 4%.

Posted by: RotoHockeyYTD2013MainPort (a.k.a RotoHockey2013MainPort) on Mar 28, 18:12 in response to DocRock's post Always a possibility, but

You had enough to BUY 100,000 Shares using the Rule of 4%. (Unless your other Investments were Frozen).

Here's how the Rule of 4% Works. (SMEKD) is expected to Increase considerably more than 4% (perhaps even +30%). Whatever your other Holdings, Dump enough to BUY 100,000 Shares of (SMEKD) - that's 1% Commission. BUY (SMEKD) - that's another 1% Commission.

After Adjust on Sunday, SELL (SMEKD) - that's another 1% Commission. Then Re-Acquire what was Dumped - that's another 1% Commissioon.

Total Commission - 4% and you end up with what you started with. Whatever (SMEKD) Increases over 4% is your approximate Net Profit.

If (SMEKD) Increased roughly 30%, your Net Profit would be roughly 26% (Variance due to Commissions being Calculated on different Base Amounts).

With the Rule of 4%, you always have enough to Acquire whatever you want, provided that your Port Size is greater than the Acquisition (and provided that your usable Holdings are not Frozen - Halted).

Best Wishes.

Newbie here...what am I missing about Home's current price and latest BO estimates out today DocRock Mar 28, 17:15

Correct. Assuming it does hit at least $53. It will halt at 6pm PST {nm} Strider907 Mar 28, 17:17

Whoa. That's what I thought. DocRock Mar 28, 17:18

Unless predictions are wrong. :) {nm} Dorfman Mar 28, 17:23

Always a possibility, but DocRock Mar 28, 17:43

I think this is the correct move. Also... RogerMore Mar 28, 17:50

Thanks for the gentle reprimand for a newbie! DocRock Mar 28, 17:56

No, posting that you have just made a trade or are about to is generally not allowed. But that doesn't matter, because a forum filled with RogerMore Mar 28, 20:10

The Rule of 4%. RotoHockeyYTD2013MainPort Mar 28, 18:12

Appreciate the feedback everyone. Rule of 4 is good to know. Thanks! (NM) DocRock Mar 28, 19:51

That's not quite true, because your the stocks you sold could change price before you re-buy them, but in this case I think it's worth doing {nm} JDolphin Mar 28, 20:26