I buy stocks to profit some money when I sell them. I used to spend a lot of time monitoring the stocks flutations and made a lot of mistakes. I still do, but not as much nor as expensive.

So I created a table in wich we can indicate how much we want to win and it indicates how much the stocks will have to increase in order to do so considering the amount we are going to invest.

You'lI find it quite usefull and easy to make.

How much they will have to increase?

How many stocks do I have to buy?

At what price should I buy them?

How much we want to gain and how much we have to invest.

Let's take an example:

We have 500 dollars to invest and want to make 100 dollars profit.

We are charged 20 dollars (10 dollars to buy and 10 dollars to sell the stocks).

So we will have to make 120 dollars when we sell in order to get 100 dollars profit.

Now we enter the "if" land:

If stocks increase 1 cent we'll have to buy 12000 of them (120$/0,01$).

If stocks increase 2 cents we'll have to buy 6000 of them (120$/0,02$) and so on.

It would look something like this in a calculation sheet:

Increase                   Expected profit plus charges (100+20)

                                              120$

0,01$                                   12000

0,02$                                     6000

0,03$                                     4000

We have 500 dollars to invest (that is what we determined in our example) and we already now how many stocks we have to buy accordingly to the possible increase.

Let us consider the 0,02$ increase:

We have to buy 6000 stocks and have 500$ to do it. We have to buy them at 0,083$ (500$/6000).

The calculation sheet increases a bit:

                                                                              Amount to invest

Increase        Expected profit plus charges             500$

                                           120$                               Stock price

0,01$                                12000                                 0,042$

0,02$                                  6000                                 0,083$

0,03$                                  4000                                 0,125$

2 or 3 digits after the comma can make a big diference. If you notice 0,13$X4000 is 524$ but 0,12$X4000 is 480$. Some stock exchange allow 3 digits, others only 2.

We have to consider that and if in doubt, choose the lower price.

I also use in it to determine whether I should invest the available amount in stocks or if I would make a better deal applying it in another investment.

I'm not investing at the moment. Still waiting for the stocks to reach the increasement I determined for them. What about you?

Stock market is a place where money can be made or lost. If you do it, is at your own risk and responsibility.

I just wrote about something I use.