Stock Market Math

[xix]

I need some help with a math or some logic here from stock players or accounts. I am sure someone here knows this or can direct me to a website with some brief info.

I have this stock for a while and noticed it's going up so my loss is getting less. But I don't think it's going to get to it's original price. Now before, I have bought some stocks and my loss would be less. SO I am trying to get to zero by buying more, which doesn't make sense, but ...

is there a Math formula for me to use to determine how many stocks I have to buy to break even?
Here is my situation.

Silly Manufacturing Enterprise
Quantity 100
AvgCost 14.00 C
CurrentPrice 9.00 C
MarketValue 900 C
UnrealizedGain/Loss -500.00 C

Thanks for your help.

 

[Gyaos]

Shame on the government trying to make the 98% of the broke turn into overnight MBA investors. Because so many don't have financial education, the "experts" say "diversify, diversify.....you must diversity" OR they say "stay in stocks for the long run and don't panic in a bear market", until you grow old and die hoping you invested in Berkshire Hathaway, Apple, Google (back then) or Ford.

So, they come to TERB for financial advice. Does the stock get you laid?

Why don't you "call" what you buy "to break even" instead? Why didn't you "put" your loss? See you in school, eager young mind.

Gyaos Baltar.

 

[papasmerf]

Shame on the government trying to make the 98% of the broke turn into overnight MBA investors. Because so many don't have financial education, the "experts" say "diversify, diversify.....you must diversity" OR they say "stay in stocks for the long run and don't panic in a bear market", until you grow old and die hoping you invested in Berkshire Hathaway, Apple, Google (back then) or Ford.

So, they come to TERB for financial advice. Does the stock get you laid?

Why don't you "call" what you buy "to break even" instead? Why didn't you "put" your loss? See you in school, eager young mind.

Gyaos Baltar.

What??????????????/

 

[Gyaos]

What??????????????/

98% of the broke.

 

[papasmerf]

98% of the broke.

anyone old enough to think retirement has made decisions. Some good and some bad. I am sorry but I will not fund welfare retiements

 

[W3bster]

...But I don't think it's going to get to it's original price.
...
Here is my situation.
...
Silly Manufacturing Enterprise
Quantity 100
AvgCost 14.00 C
CurrentPrice 9.00 C
MarketValue 900 C
UnrealizedGain/Loss -500.00 C

I am not a trader or anything, but if you don't think it's going to go up what is the sense in averaging down? You would have to buy in upwards of 50,000+ shares to reach the $9.00 average cost zone. Do you have half a million dollars lying around?

And Gyaos is talking about options which can be used to hedge against losses or to lock in gains without selling the security among numerous other strategies.


Edit: I can't figure out a formula at the moment, but you could set up something like this in a spreadsheet and keep on plugging in the shares to see the average cost that results.

Shares $ amount
100.00 1,400.00
100,000.00 900,000.00


Total 100,100.00 901,400.00


Average cost 9.0049950

 

[wetnose]

I have this stock for a while and noticed it's going up so my loss is getting less. But I don't think it's going to get to it's original price. Now before, I have bought some stocks and my loss would be less. SO I am trying to get to zero by buying more, which doesn't make sense, but ...

is there a Math formula for me to use to determine how many stocks I have to buy to break even?
Here is my situation.

Silly Manufacturing Enterprise
Quantity 100
AvgCost 14.00 C
CurrentPrice 9.00 C
MarketValue 900 C
UnrealizedGain/Loss -500.00 C

Thanks for your help.

There isn't a formula because it would depend on the market price.

Presently you have an unrealized loss of $500.

What you would need is to buy X # of shares @ $y price (say outlay of $5,000) and sell it @ $z price, for total proceeds of $5,500.

That way your profit of $500 realized from buying and selling X number of shares would offset your loss of $500.

What is X? Well, depends on your buying and selling price...which are unknown quantities at this point.

 

[KBear]

Read somewhere that if you don’t have the guts to sell stocks at a lose, you should not be buying them in the first place. If you believe the stock you are holding is the one most likely to go up in value, out of all the available stocks, then buying more makes sense. However, if you believe there are better opportunities out there, then what you are doing sounds desperate, and you should likely not be trading.

As mentioned, what you want to do can be done easily in a spreadsheet.