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Hypothetical Return Calculations

Starting investment $5000
Step 1: Invest $5000 into the first recommended stock. Say you make 10% profit. Your gross proceeds are $5500
Step 2: Invest proceeds from step 1 into next stock. Say you make 2.5% your gross proceeds are $5775.

And so on........

While this is hypothetically possible, as the money grows it is not practical due to stock trading volumes and trade entry and exit limitations.

Practical Return Calculations

Starting investment $5000

Step 1: Invest $5000 into the first recommended stock. Say you make 10% profit. Your gross proceeds are $5500
Step 2: Invest $5000 from the net proceeds into the next stock. Say you make 5% profit. Your gross proceeds are $5250. You still have $500 in cash from step 1.
Step 3: Invest $5000 from the proceeds into the next stock. Say you have a 3% loss. You end up with $4850. You still have $750 cash from steps 1 and 2.
Step 4: Use $4850 proceeds supplemented by $150 from the cash for a total of $5000 to invest in the next stock.

and so on.....

You are technically investing $5000 in each stock while cashing out profits on the way.This is a realistic and practical way to use the recommendations in this site. This will allow you to invest in multiple positions in case overlap occurs using the cash you have taken out.

Avg Days held are a weighted average calculated as follows:
Example 1: 1000 shares held for 30 days and 1000 shares held for 60 days : Avg hold: =( 1 x 30 + 1 x 60)/2 = 45 days
Example 2: 3000 shares held  for 30 days and 1000 shares held for 60 days : Avg hold:= (3 x 30 + 1 x 60)/4 = 38 days
Example 3: 1000 shares held for 30 days and 3000 shares held for 60 days: Avg hold : = (1 x 30 + 3 x 60)/4 = 53 days

Trading both stocks and options:
(1) Profits from naked puts are reported as a separate trade if the puts are not excercised. If we hold shares of the stock or the puts are exercised before closing the option position the profit is used to reduce cost basis.
(2) Profits from covered calls are used to reduce the cost basis in the stock if the stock is not called. The reason for doing this is that covered calls can only be sold if we own the stock.

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