RE:RE:RE:RE:Note to Retail ShortIf a Long Position Investor purchases shares at $5 then that SP drops down to a $1 or lower then the SP reverts back up to $10 or $20 how much was lost and how much was made if he doesn't sell any shares?
The Answer is Zero.
Losses on paper and gains on paper are just that -> On Paper.
If the same investor purchased at $5 then bought again at $1 then their average could drop down to less than $2.50 (depending on size of trade). If the SP then simply recovers back to the original $5 the investor could actually sell half the shares at twice their new / lower average and have 100% of their cash out and be sitting with shares remaining with ZERO dollars in play. If the SP should then proceed to run back up to $20 or $30 further profit taking can be done while the investor enjoys zero risk exposure.
Explain to me how that scenario could be copied with a Short-Position trade... not that I care, I just want a chuckle.