Quoting hanoverDislikedIf the "frozen 1% P/L" is a loss, then both traders are effectively down 1%.Ignored
The losser has 1% realized loss and thus has 1 % less equity available for new trades.
But a floating loss is not equal to a realized loss.
In fact it is completely different.
How can this be explained ?
I once was in stocks.
They were "worth" 500k (was in DM times long before the stupid and idiotic Euro was invented by NewWorldOrder criminals).
They were rising and the same amount of stocks were 600k.
Did I have earned 100k ?
Then market dropped and the stocks were only 300k "worth".
I hold them.
Did I lose 200k ?
Or even 300k relative to the all time high ?
What do you think ?
Is a floating loss equal to a realized loss ?
When I read your postings, I have the impression that you are trying
to convince me that they are equal.
So I waited some more with my stocks until
I trusted the advice of the year 2000 doomsday ( all computers will
stop working correctly, the world will fall into stone age )
and I sold my stocks for 500 k.
My net profit was zero.
the year 2000 came and the lights still did burn after midnight.
And the stocks saw a rally.
My stocks would have rallied to 1 million.
But I was invested in real estate instead.
Missed the rally because I sold on a rumor.
Do you still believe that a floating loss or floating profit is
equal to a realized loss or profit ?
Then every word more is futile, hanover.
QuoteDislikedPerhaps "ignore" was bad choice of word on my part. But in your reply to LazyPawn, where you say:
"Outcome:
Losser: - 3 %
Locker: + 1 %"
...... the +1% doesn't include floating or frozen losses, right?
(Just trying to understand, no criticism implied).
I am not in the market.
The losser has closed his 5 positions too and is not in the market.
In that situation the +1% do not include frozen floating losses, there is
no open position at all.
QuoteDislikedI have only one tiny problem with that. I don't see any reference to the math in my post.
Then they come and say: hanover proved that lock-unlock does not work and is stupid.
I say: They donīt understand lock-unlock in the first place and thus they fall into the trap that you just "proved" that lock-unlock is nonsense.
QuoteDislikedI have nothing further to add to my previous posts, and I don't want to repeat myself. The simple fact is that we view floating/frozen losses differently.
My stock market example proves that they are not equal.
If you still insist that they are equal, there is nothing to discuss anymore.
QuoteDislikedLet's just agree to disagree. Thanks for the discussion.
But I donīt get it because I donīt understand why a math not related
to what lock-unlock is should "prove" something.
I donīt get your point, hanover.