Any one good knocking up a simple spreadsheet?

[Pudney]

(40000 * 800)/3000 = 10666.666

What am I doing wrong Von? Am I mixing up terms?

Yes, you want (40,000*2%)/3,000= 0.266666...

 

[Tikkabhuna]

Risk of trade for this example is 0.02 (2%), $800 is the result of $40,000 * 0.02%.

 

[Nix]

Yes, you want (40,000*2%)/3,000= 0.266666...

Oh I see.

40000 * 0.02

not

40000 * (40000/100*2)

Derp.

So, does that mean the STOP is 27c (rounded up) or is there something else to do with it?

 

[Spit]

Ah right, seems like a roundabout way of doing things though!

Account: 40,000
Risk at 2%: 800

You want to buy 8000 shares at 1.28 so:

8000 * 1.28 = 10240

To apply the risk:

10240 - 800 = 9440

and: 9440 / 8000 = 1.18

So: 1.28 - 1.18 = 0.10 .: Stop = 10c

With ya.

This is all new to me in case you haven't guessed.

No worries, with trading the stops are the hardest thing for beginners to grasp and stick too. I thought a spreadsheet they could use to actually tell them when they should be exiting a trade would help.

 

[Tikkabhuna]

Nix, what you did in post #19 was perfect. What are you trying to do now?

 

[Nix]

Just apply the formula von introduced. If the 27c stop is correct, then it makes sense now.

 

[Spit]

27c is correct. My paper calculation was wrong at 30c, sorry.

 

[Pudney]

Just apply the formula von introduced.

meh, I did the formula first, just in Excel