How good is your money maths?

JimmyTheWig

happyinflorida wrote: »

There's nothing on the bit where it should be?!!!

Press and hold your left mouse button and drag your mouse over the "bit where it should be". This will reveal the explanation.

dimbo61

The only little thing missing is the commission that the dealers get !!!!
The nice people in the city who buy and sell shares and get MILLION ££££ bonsus each year
The same people who make the banks millions or lose the banks millions
So if you buy and sell shares its the dealers who make the money and in most cases not the investors
I dont buy shares and dont PLAY! the stock market

fozzeh

dimbo61 wrote: »

The only little thing missing is the commission that the dealers get !!!!
The nice people in the city who buy and sell shares and get MILLION ££££ bonsus each year
The same people who make the banks millions or lose the banks millions
So if you buy and sell shares its the dealers who make the money and in most cases not the investors
I dont buy shares and dont PLAY! the stock market

You forgot SDRT and PTM levy as the trade is over £10k too!

Love the theory too. Just love it.

MarshaMarsha

Hi. wow my first forum, thought I understood Maths more than I actually do, or perhaps it's just how the stock market works that has bamboozled me, is it not to do with the amount at the end of the 8 years? This is what I got working from 100
Rise 4 years then Fall 4 years 100 - 110 - 121 - 133.10 - 119.79 - 107.81 - 97.03 - 87.34
Fall 4 years then Rise 4 years - 100 - 90 - 81 - 72.90 - 80.19 - 88.21 - 97.03 - 106.73
Same100
If it rises by 10% for 4 years you have 133.10, the falls from this amount for 4 years your left with 87.32 at the end of 8 years, then if it falls by 10% for 4 years you have 72.9, the rises by 10% for 4 years from this you will have 106.73 st the end of 8 years making this better then staying at 100?? no. Or am I misreading the question? as I have done + + + + - - - - & - - - - + + + +

JimmyTheWig

MarshaMarsha wrote: »

Rise 4 years then Fall 4 years 100 - 110 - 121 - 133.10 - 119.79 - 107.81 - 97.03 - 87.34
Fall 4 years then Rise 4 years - 100 - 90 - 81 - 72.90 - 80.19 - 88.21 - 97.03 - 106.73

You've only done the first "bit" for 3 years, not 4. It's 100.00 at the start, 110.00 at the end of year 1, 121 at the end of year two, etc.

MarshaMarsha

Oh my goodness thank you I see now ha ha ha. :j

sabretoothtigger

B is philosophically right as its better to clear losses first before investing into gains. Its easier to lose more when you have that something more to lose !

thebigbosh

QUOTE: "The most important thing to understand is that if you add X% on a value then take X% off – you'll always end up with less than you started with."

Another way to think of it: compare 90% and 110%. If you added an extra 10% to 90 you'd get 99. Also, if you remove 10% of 110% you actually remove 11, hence 99 also. Both cases give you 99%