Module 1 — Foundations
Price movement versus percentage movement
4 minute read
In plain English
A 20 cent move is 10% on a $2 stock and 0.1% on a $200 stock. Percentage tells you the size of the move relative to the price; dollars per share tell you what it is worth to your position.
Why it matters
Your profit and loss is driven by dollars per share multiplied by share count — not by the percentage on the screen.
Example
100 shares of a $2 stock moving 50 cents is $50. 100 shares of a $200 stock moving 50 cents is also $50, but it is a far smaller percentage move.
Try this
Take any ticker on the Radar and work out what a 25 cent move would be worth on 100 shares.
Common mistake
Chasing the biggest percentage gainer of the day without checking what the move is actually worth, or what it would cost if it reversed.
What this does not mean
A large percentage move does not mean the stock is more likely to continue.
Educational content only. Not financial advice.