MATH AND THE TRADER

Many times I receive messages asking about
How to compute averages, percentage, gains etc.

So let me give you this as your guide.
This is just a simple math that we need to know.

Math is Easy lools :P :P

Lets start on how to;

A) FINDING AVERAGES


If you're doing a cost averaging or PCA Peso cost averaging 
And wondering or thinking, how you could know your average.

If you're buying in tranches, this is also for you.

Example stock is $MPI

1st Bought
PPS (Price per Share) 7.35 x 1000shares= P7,350

2nd Bought
PPS 7.10 x 3000shares= P21,300

Formula:
Total Amount purchased 
divided/ by 
Total number of Shares

In this case, it should be like this..

Total amount of purchased= P 28,650 (P7,350+ P21,300)
Total number of Shares= 4,000 (1,000sh+ 3,000sh)
28,650/ 4,000= P7.1625 is your Average

Easy right.. wink wink

ayos ba... 

B) FINDING THE % PERCENTAGE

How to know your % Gain or Percentage Target?
Simply do this math.

FORMULA:
Price Sold or Your TP Target price, lets call this (A)
divided/ by 
Price bought, lets call this (B)
minus -1 (infinite number)= C x 100= % Gain

or like this
A/ B- 1= C
C x 100= % Gain

Example stock is $MPI

TP my target price or my Sold price= P9.50
Price Bought or the Average price= P7.10
P9.50/P7.10- 1=
P9.50/P7.10= P1.338
P1.338 (subtract)- 1= 0.338
0.338 x 100= 33.8%, that's your whooping GAIN!!!


Another example is $VITA

P2.50 (TP)/ P1.55 (Ave) -1= 0.6129
0.6129 x 100 = 61.29% GAIN or TP

Easy again right.. tweet tweet ;)


C) ADDING % PERCENTAGES INTO NUMBERS

When you want to Add the % Gain to your Average price

Example figures are;
1) Add 25% to P35
2) Add 50% to P6.50 (ceiling )
3) Add 3% to P97.25
4) Add 8% to P16.35

Lets answer that by showing you how to do it..

Simply multiply P35 to the % Percentage but you must Add 1 before the number, It's like this..

1) Add 25% to P35
P35 x 1.25 (25% becomes 1.25) 
the number 1 must be present in two digits 
= P43.75, thats the result of adding 25% to your P35

2)  Add 50% to P6.50
P6.50 x 1.50= P9.75 is the Ceiling price

3) Add 3% to P97.25
P97.25 x 1.03 ( in this case, 1 is still present but the given % is a single digit which is 3. That's why we need add 0 zero before 3 )

P97.25 x 1.03= P100.16 is the added 3% of your P97.25

4) Add 8% to P16.35
P16.35 x 1.08= P17.65

Not that hard, right..

Yeah baby...

Well take note, this is just a simple formula 

*I used myself to calculate my Average. 

Especially when I am doing a tranche buying. 

*Whenever I want to  know my percentage gain

If I want to sell it on my Target price. 

*And whenever I want to see a result 

If I add a given percentage to my average. 

Sana hindi ko po kayo nalito.

Just read it again,, you'll surely get it.

Slowly but surely.

Because this is needed to learn. 

Stay Dedicated

It's not going to happen overnight.

Keep Studying with Dedication