Shares outstanding vs. price

[skc]

My immediate conclusion was an expensive stock which had run doubped/trippled would be "more" likely to start to move slower.

3 things

1. By expensive stock you actually meant a stock with a high share price. Expensive = share price much higher than it's value. High share price = a high numerical dollar value per share. Use the right term so your mind isn't confuse between the two.

2. A stock with high share price and a stock that had doubled/trebled are two different things again.

3. Without specifying timeframe, a stock the had doubled/trebled would probably move just as quick if not quicker imo.

Anyhow, I didn't read the pages you've attached (they were too hard to read), and I am not here to criticise what's right or wrong in the book you've read. I just offered some questions for you to find your own answers.

Something for another thread, if you want to pursue. Got some questions about the application of this concept in investment environments in contrast to low uncertainty environments.

Which other thread? I am a crap investor, and I am uncertain as to what you meant by uncertain environments...

Why do you consistently want to complicate everything with layers of crap.

Because ignorance is a bless? It rhymes!

 

[KnowThePast]

In theory there is no difference between theory and practice; in practice there is.

In theory, a $100m company is worth the same regardless of how many shares it is divided across.

In practice, taking companies in the lowest 10% of the market (by share price alone) will tend to result in a list heavily skewed towards smaller, more speculative companies. And they will be more volatile.

And the same true at the other end, taking companies with the highest share prices will usually produce a list of companies with large capitalization.

Whether this kind of whole market average is of use to anyone is another question.

 

[DeepState]

Which other thread? I am a crap investor, and I am uncertain as to what you meant by uncertain environments...

That's crap. You are an unbelievably good trader and I'd like very much to learn as much as you are willing to shed, even if what you have to share isn't complicated. A new thread has now been established as "Becoming better at X" in the Beginner's Lounge. Hope to see you there. For you, I'm buying.

 

[burglar]

Here is one that tripled today! ASX: SXX Southern Cross Expl.

Trade History
Security Date Open High Low Close Volume
SXX 02/10/2014 0 0 0 0.001 0
SXX 01/10/2014 0 0 0 0.001 0
SXX 30/09/2014 0.001 0.001 0.001 0.001 300,000
SXX 29/09/2014 0.002 0.002 0.001 0.001 3,494,712
SXX 26/09/2014 0 0 0 0.002 0
SXX 25/09/2014 0.002 0.002 0.002 0.002 893,200
SXX 24/09/2014 0.002 0.002 0.002 0.002 1,074,610
SXX 23/09/2014 0 0 0 0.002 0
SXX 22/09/2014 0 0 0 0.002 0
SXX 19/09/2014 0 0 0 0.002 0
SXX 18/09/2014 0 0 0 0.002 0
SXX 17/09/2014 0.002 0.002 0.002 0.002 325,390
SXX 16/09/2014 0.002 0.002 0.002 0.002 50,100
SXX 15/09/2014 0.003 0.004 0.003 0.004 2,563,249
SXX 12/09/2014 0.004 0.004 0.003 0.003 8,356,000
SXX 11/09/2014 0.005 0.005 0.005 0.005 200,000
SXX 10/09/2014 0 0 0 0.004 0
SXX 09/09/2014 0 0 0 0.004 0
SXX 08/09/2014 0 0 0 0.004 0
SXX 05/09/2014 0 0 0 0.004 0
SXX 04/09/2014 0.004 0.004 0.004 0.004 1,327,100
SXX 03/09/2014 0.003 0.003 0.003 0.003 600,000
SXX 02/09/2014 0 0 0 0.004 0
SXX 01/09/2014 0 0 0 0.004 0
SXX 29/08/2014 0.004 0.004 0.004 0.004 223,000
SXX 28/08/2014 0.003 0.003 0.003 0.003 1,200,000
SXX 27/08/2014 0.004 0.004 0.003 0.003 49,357,586
SXX 26/08/2014 0.004 0.004 0.003 0.003 2,250,000
SXX 25/08/2014 0.003 0.004 0.003 0.004 550,000
SXX 22/08/2014 0.005 0.005 0.003 0.004 1,949,899

 

[darkhorse70]

Thats what I meant SKC. I should have been more clear. But point taken. Im currently coming up with a trading strategy. Rather than start and test one factor individually, im just adopting strategies from famous traders. Combining suitable ones then combining it. Then I will trade with it and see what the results are. Then individually test them and tweak them. Well thats the plan.

Thanks knowthepast.

 

[So_Cynical]

Could you say why RY's comments were 'crap'?
Seemed to me a positive and interesting response to SKC's post designed to further the discussion.

Err who said RY's comments were crap? ill quote myself.

Why do you consistently want to complicate everything with layers of crap.

The vast majority of topics to do with stock investing/trading require little explanation IMO.