90 shares @ $31.00 = $2,790
70 shares @ $24.00 = $1,680
Total is 160 shares for $4,470
At what price do I sell to break-even?
I worked it out to be about $27.94?!
90 shares @ $31.00 = $2,790
70 shares @ $24.00 = $1,680
Total is 160 shares for $4,470
At what price do I sell to break-even?
I worked it out to be about $27.94?!
Incorrect... You need to factor in your trading expenses too... Buy, buy and sell
The level of intellectuality on display here... just astonishing.
BTW, are you averaging down or pyrmiding up?
Light intellectual banter incredibly difficult after a few schooners I see
I believe effort to be a finite resource. Something to be used only when there are no other options available.
All things are difficult before they are easy.
Keith's Art
Hi guys, this is a really basic spreadsheet to help you work out your average entry price. Doesn't include brokerage or any other costs, but by all means have a play with it to include these if you see fit.
Will work with Excel & Open Office, and I think Google docs (though I haven't used it with Google docs).
Enter the details of the number of shares bought and the price paid in the yellow cells, other cells should calculate automatically for you.
I hope it is helpful.
The contents of this post were tested, ruthlessly, on small, cute, furry animals. Most of them were fatally harmed. Hence, if this post causes irritation, please discontinue reading immediately.
I was making a comment on using averages. for your second example, if you were to use averages - the average price would not work as you have purchased a different number of shares each time. The average price is $0.9 - I have no idea how you obtained $1.00 from getting the average.
If you remember from HS, average is the sum or the 2 prices divided by 2. The method you used - which is correct when you have different no. of shares is not a calculation of average price.
Mate, you can't use that formula to work out your average price. We'll try again.
150 @ $1.10 = $165
50 @ $0.70 = $35
=150 + 50 = 200
= $165 + $35 = $200
= 200 shares for a cost of $200 - agreed?
This is what you are doing:
$1.10 + $0.70 = $1.80 / 2 = $0.90
But this is incorrect because - $0.90 x 200 = $180 but the shares have cost you $200. If you work out your ave price like this you will falsify your results.
To get your average price you divide the total cost by the total number of shares not the sum of the purchase prices divided by the number of parcels brought.
All things are difficult before they are easy.
Keith's Art
The contents of this post were tested, ruthlessly, on small, cute, furry animals. Most of them were fatally harmed. Hence, if this post causes irritation, please discontinue reading immediately.
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