In dollar terms, Google has been a pretty good stock for me to trade since early 2007, averaging a profit of $25.90/share per trade.
In percentage terms? Well, not so much. Just an average gain of 7.6%.
But there is (sort of) an upside to all of this. Since February 2007 our trading has produced a total return on investment of 68.3%, whereas if I'd simply held the stock from my first buy signal at $500.40, I'd only be up 5.8% today.
1. SHORT the week of 2.26.07 at $438.68. Using $510.33 for my stop, the initial risk (R) on the trade was $71.65. Stopped out and reversed to long the week of 5.29.07 at $500.40. The percentage loss on the trade was -12.3%, and the reward-to-risk ratio was -$61.72/$71.65 = -0.86.
In percentage terms? Well, not so much. Just an average gain of 7.6%.
But there is (sort of) an upside to all of this. Since February 2007 our trading has produced a total return on investment of 68.3%, whereas if I'd simply held the stock from my first buy signal at $500.40, I'd only be up 5.8% today.
1. SHORT the week of 2.26.07 at $438.68. Using $510.33 for my stop, the initial risk (R) on the trade was $71.65. Stopped out and reversed to long the week of 5.29.07 at $500.40. The percentage loss on the trade was -12.3%, and the reward-to-risk ratio was -$61.72/$71.65 = -0.86.
2. LONG the week of 5.29.07 at $500.40. With the stop set at $443.10 my risk was $57.30. Stopped out and reversed to short at $566.40 the week of 1.22.08. The percentage gain on the trade was 13.2%, and the reward-to-risk ratio was $66.00/$57.30 = 1.15.
3. SHORT the week of 1.22.08 at $556.40. The stop was $717.94, so my risk was $151.54. Stopped out and reversed to long at $581.29 the week of 4.28.08. The percentage loss on the trade was -2.6%, and the reward-to-risk ratio was -$14.89/$151.54 = -0.10.
4. LONG the week of 4.28.08 at $581.29. Placing my stop at $431.69, the R on the trade was $149.60. Stopped out and reversed to short the week of 8.25.08 at $463.29. The percentage loss on the trade was -20.3%, and the reward-to-risk ratio was -$118.00/$149.60 = -0.79.
5. SHORT the week of 8.25.08 at $463.29. My stop was $566.50, so that means R was $103.21. Stopped out and reversed to long the week of 3.30.09 at $369.78. The percentage gain on the trade was 25.3%, and the reward-to-risk ratio was $93.51/$103.21 = 0.91.
6. LONG the week of 3.30.09 at $369.78. My stop was $269.70, so my R was $100.08. Stopped out and reversed to short at $550.01 the week of 1.19.10. The percentage gain on the trade was 48.7%, and the reward-to-risk ratio was $180.23/$100.08 = 1.80.
7. SHORT the week of 1.19.10 at $550.01. The initial stop was $631.14, so R = $81.13. Stopped out and reversed to long the week of 9.20.10 at $527.29. The percentage gain on the trade was 4.3%, and the reward-to-risk ratio was $22.72/$81.13 = 0.28.
8. LONG the week of 9.20.10 at $527.29. With the stop set at $447.16 the risk on the trade was $80.13. Stopped out and reversed to short at $561.06 the week of 3.14.11. The percentage gain on the trade was 6.4%, and the reward-to-risk ratio was $33.77/$80.13 = 0.42.
9. SHORT the week of 3.14.11 at $561.06. My initial stop was $631.23, so the risk was $70.17. Closed last week at $529.55 with a $596.80 stop. The percentage gain on this trade is 5.6%, and the reward-to-risk ratio is $31.51/$70.17 = 0.45.
Bottom Line:
Winning Trades: 6 | 66.7% | $71.29/share avg.
Losing Trades: 3 | 33.3% | -$64.87/share avg.
Average Trade: Gain of 7.6% | $25.90/share | Reward-to-Risk Ratio (R): 0.36
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