REGAL INVESTMENTS
Understanding The Results - Brochure Page #3
Understanding The Results - Brochure Page #3
A correct projection Is defined as a profitable position (long/ short) or profitable closing price, relative to the closing price on the start date during the interval period. A correct projection may sometimes not be immediately profitable. A potential loss During the interval period, if a stock is not experiencing profitability, this risk potential or moment is called a potential loss; so a potential loss is defined as the maximum downside or the most extreme closing losing price or closing losing value a stock may experience during the interval period in a projection and may be found in a correct and incorrect projection. An actual loss Is defined as never being profitable during the interval period or incorrect projection The following charts are assumed to be successful projections, except fig#4: and are for example purposes
In fig#1 all the closing prices never went against the position during the interval period (A B), established on the start date at point A. No potential loss was experienced by the stock. The projection was correct . Here the example used was a long position, but this “no potential loss” result would be similar in a short. In fig#2 the interval period is DG. The position is long. Profitability was not immediate and so a potential loss or maximum risk point was experienced at point E based on the above definition. From the first definition the projection was correct peaking in profitability at point F. Fig#3 is similar to fig#2, in that the stock experienced a potential loss, here though at point I. Remember this position was a short projection during the interval period (HK). Here the short position eventually became profitable and peaked at point J. In fig#4 the interval period is LM and the position is long. Since the stock was never profitable this would be an actual loss and once again there would be a similar loss in a short projection. If the stock projections of fig#1 & fig#2 were incorrect the results would look like fig#4. If fig#3 projection was incorrect the result would look like fig#1. THE DATA IN THE TABLES BELOW IS FROM THE "HOW TO" PAGE Based on fig#3 and the documentation from the "How To" page intel (intc) table #1 was profitable in a short position and experienced a potential loss. TABLE #1
Here with table #2 no potential loss or risk was experienced as the stock never went against the position as in fig#1 and so "none" was entered for the potential loss. Theoretically though, all trading is risky. TABLE #2
Here in table # 3 Boeing (BA) did not experience profitability at all during the interval period as in fig# 4. This projection was up or long (buy). The target date closing price was documented as this was the last theoretical day during the interval period for the stock to still become profitable. Since this projection was unsuccessful both the price the target date were entered under "incorrect" and under "actual loss". The maximum downside or potential loss was also documented. TABLE #3
take up to 72 hours. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
