GM - Review of Entry Long in October and Exit in February -Ratio
Here is another way to look at trade ideas - relative to the S&P500.
Ratio charts allow you to quickly see how one asset is performing relative to another and if you go "LONG GM" in this example, you are really choosing to own GM instead of the "Market". So, it is important to be good and make money on your ideas, but if you had made more money by just owning the market, then in reality you really aren't benefiting from all of the hard work and effort of stock picking.
You can also see that since exiting in February GM has fallen relative to the market. I can add GM and SPY to this chart so you can see which market drove the ratio up and down, but in this case GM has fallen and the market has risen since February.
Small note: I multiplied GM by 100 so that the resultant ratio would be similar to a stock price that you are familiar with: 16.76 last instead of 0.1676.
The ratio changes are highlighted using the "Price Range" function on the drawing tools menu.
Wishing you all success, relative to the market.
Cheers,
Tim
April 24, 2015 11:46AM EST GM*100/SPY = 16.77 last
Ratio charts allow you to quickly see how one asset is performing relative to another and if you go "LONG GM" in this example, you are really choosing to own GM instead of the "Market". So, it is important to be good and make money on your ideas, but if you had made more money by just owning the market, then in reality you really aren't benefiting from all of the hard work and effort of stock picking.
You can also see that since exiting in February GM has fallen relative to the market. I can add GM and SPY to this chart so you can see which market drove the ratio up and down, but in this case GM has fallen and the market has risen since February.
Small note: I multiplied GM by 100 so that the resultant ratio would be similar to a stock price that you are familiar with: 16.76 last instead of 0.1676.
The ratio changes are highlighted using the "Price Range" function on the drawing tools menu.
Wishing you all success, relative to the market.
Cheers,
Tim
April 24, 2015 11:46AM EST GM*100/SPY = 16.77 last
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