Can someone please check this for me lol!!
Just trying to do a basic calculation and it doesnt seem right, please confirm or deny and show me where i have gone wrong.
Lets say i have 6000 capitol
2% risk on that is $120
I want to invest $3000 on an 80c share
so thats $3000/.80c = 3750 shares
Now where i am having troubles is working out the stop
$120 is 4% of $3000
I cant for the life of me work out at the moment where the stop should go? Or should i say work out what the lowest possible stop i could have?
Any advice would be appreciated, i know its something simple i just cant see it right now?