Registered User
Joined: 3/20/2005
Posts: 78
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How do I contact Don Worden? I want to comment on using half-point movers
in Breadth Indications.
Many times in past Worden Reports, Don listed the half-point+ movers - ups
vs. downs. But using half-points instead of a percentage skews the
results by blocking out low-priced stocks that had strong moves in terms
of percent.
It is easy and common for a $100 stock to move by $0.50; that is only one
half percent. But it is harder for a $10 stock; $0.50 is five percent.
It is very hard and uncommon for a $1.00 stock to move by $0.50; that is
FIFTY percent!
How did you arrive at $0.50 moves as something to watch for, and why don't
you use a percentage, such as four or five percent, instead?
I find that it is more fair to compare stocks in terms of percent change
since the price determines how many share you can buy with a given amount
of capital to invest. Example: the classic $10,000 can buy 100 shares of
a $100 stock, 1000 shares of a $10 stock, or 10,000 shares of a $1 stock.
Respectively, a fifty cent move in these stocks would mean $50, $500, and
$5,000 up or down. But a five percent change would mean a $500 change in
value for all three cases.
In my book, Percent Change is more important than Price Change when comparing stocks of various prices.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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From the bottom of the Daily Worden Report:
All User-written letters or submissions published here are edited at our discretion without prior permission or inspection by the submitter. Letters to Peter or Don Worden, including submissions to the knight program, may be so-directed by sending them to support@worden.com.
-Bruce
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Registered User
Joined: 3/20/2005
Posts: 78
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Thanks, Bruce. I don't usually see the bottom of the
Worden Reports; I stop scrolling at the trend indicators.
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