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IntroductionMicrostock is a computer program which calculates buy and sell indicators for the London Stock Exchange Main and AIM markets. It is a propriety system which has been in development for over a year and has recently finished testing with great success. As a consequence of this, we are now actively trading with a small amount of capital. Initial results have proved positive and as of the 01/05/2009 we have generated a real net profit of 10% within 11 days.Great care has been taken to replicate the trading process as it happens in real life. Therefore what follows is a brief description of the monetary values on the main webpage to help aid your judgement of Microstock.
Total investmentInitial investment required. This includes buying and future selling costs along with stamp duty of 0.5%. This was the total amount of capital required before Microstock became self-sufficient.
Total investment recoupedProfit taken from the Micrstock trade account and returned to investor.
Maximum investment per stockMaximum amount of capital invested in any stock at any one time. Microstock has been designed not to buy the same stock twice unless the first trade has been completed.
Cost to buy or sellBroker fees.
Stamp dutyUK tax currently set at 0.5%. For simplicity I have set stamp duty to be always £5. This assumption is pessimistic depending on the actual price of shares bought.
Stocks currently held profitTotal number of trades outstanding and overall profit. A loss is indicated by a negative value. This calculation includes the cost to buy and sell but not stamp duty.
Stocks sold profitTotal number of trades completed and overall profit. This calculation includes the cost to buy and sell but not stamp duty.
Net profitNet profit is defined as: (stocks sold profit) + (stocks held profit) - (stamp duty) - (investment recouped) |