I'm using the stock simulator on investopedia.com to learn how to trade. The precise game I'm within started me out with $100,000 on April 21, 2008. Since next my money has gone down to 92,535.20. Investopedia is recitation me that as of now my annual return is -61%. How is this possible? I would suppose it would my -7% or -8%.
Answers: As far as I can see, you lost about 7.5% contained by about a month. Consequently, it is projecting how much you will lose, if you verbs like this over a year. The division is something like:
100 000 x 0.925 (12 times) = give or take a few 39 000
100k-39k = 61000 loss = -61% loss
Because it's an annual return. The -7% return you have for a few weeks, if repeated for the unbroken year, would net you -61%.
Investment returns are usually reported on an annualized argument so you can more easily compare returns.
I am guessing that they are calculating the losses on respectively trade not as a percentage of your total capital.
If you invest $10k from a $100K assets base and consequently lose $5K, that is a 50% loss not a 5% loss.
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Answers: As far as I can see, you lost about 7.5% contained by about a month. Consequently, it is projecting how much you will lose, if you verbs like this over a year. The division is something like:
100 000 x 0.925 (12 times) = give or take a few 39 000
100k-39k = 61000 loss = -61% loss
Because it's an annual return. The -7% return you have for a few weeks, if repeated for the unbroken year, would net you -61%.
Investment returns are usually reported on an annualized argument so you can more easily compare returns.
What is the difference between 'limit' and 'stop' on etrade trading?
I am guessing that they are calculating the losses on respectively trade not as a percentage of your total capital.
If you invest $10k from a $100K assets base and consequently lose $5K, that is a 50% loss not a 5% loss.
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