For the record, it would have to be a combination
Post# of 11107
Posted On: 08/27/2015 6:37:41 PM
Re: SpearOfDestiny #9311
For the record, it would have to be a combination of the following quantities:
Total Amount paid for all of your current shares.
Total Amount of money to be paid for new shares.
Total number of current Shares
Total number of new shares
Your average price will be total cost / total shares.
As you can see, to reach a break even point, you need two things:
(1) Average down to a lower average share price for your holdings
(2) The price per share needs to go up after you average down to your new average price.
So, to predict how many shares you need to buy to reach break even, you need start with a target pps you want to be even at. The current price is around 1.2c. If you set a break even target of 2c (meaning you will break even once the pps hits 2c), then, you need to calculate how many shares you need to buy at an average pps of 1.2c to get you to a 2c average.
Since your current average is a 11c, you will need about 11.25 times the amount of shares you already have in new shares at an average purchase price of 1.2c
This is calculated as follows:
[(Total cost for old shares) + (Total cost for new shares)] / (Total number of shares combined old and new) = Target Average PPS
This becomes:
[(A * 11) + (B * 1.2)] / (A+
= 2
where:
A = number of shares you currently have
B = number of shares you need to add
1.2 = the average price you will pay for the added shares in cents
11 = the average price you paid for you current shares in cents
2 = the target average pps after you average down in cents
Multiplying both sides of the equation by (A+
11A +1.2B = 2A+2B
Solving B
B= 11.25A
So, you will need 11.25 times the number of shares you currently have. If you have 100,000 shares, you need to by 1,125,000 shares at 1.2 cents to have an average pps of 2 cents. To break even, you will need the pps to go up to 2 cents after you acquire your additional million shares.
Substitute your own numbers and targets into this equation and you should be able to figure out what you need to do.
As to me, I simply buy as many as I feel comfortable with respect to the rest of my portfolio. Furthermore, I look at each and every purchase a long the way as an independent purchase. In other words, if you think the price is going to go up beyond the 1.2c that it is at currently, and you feel comfortable taking on more penny stock risk, buy. If not, don't. Pay no attention to your current holdings as past performance is no guarantee of future results.
Hope this helps.
Total Amount paid for all of your current shares.
Total Amount of money to be paid for new shares.
Total number of current Shares
Total number of new shares
Your average price will be total cost / total shares.
As you can see, to reach a break even point, you need two things:
(1) Average down to a lower average share price for your holdings
(2) The price per share needs to go up after you average down to your new average price.
So, to predict how many shares you need to buy to reach break even, you need start with a target pps you want to be even at. The current price is around 1.2c. If you set a break even target of 2c (meaning you will break even once the pps hits 2c), then, you need to calculate how many shares you need to buy at an average pps of 1.2c to get you to a 2c average.
Since your current average is a 11c, you will need about 11.25 times the amount of shares you already have in new shares at an average purchase price of 1.2c
This is calculated as follows:
[(Total cost for old shares) + (Total cost for new shares)] / (Total number of shares combined old and new) = Target Average PPS
This becomes:
[(A * 11) + (B * 1.2)] / (A+
= 2 where:
A = number of shares you currently have
B = number of shares you need to add
1.2 = the average price you will pay for the added shares in cents
11 = the average price you paid for you current shares in cents
2 = the target average pps after you average down in cents
Multiplying both sides of the equation by (A+
11A +1.2B = 2A+2B
Solving B
B= 11.25A
So, you will need 11.25 times the number of shares you currently have. If you have 100,000 shares, you need to by 1,125,000 shares at 1.2 cents to have an average pps of 2 cents. To break even, you will need the pps to go up to 2 cents after you acquire your additional million shares.
Substitute your own numbers and targets into this equation and you should be able to figure out what you need to do.
As to me, I simply buy as many as I feel comfortable with respect to the rest of my portfolio. Furthermore, I look at each and every purchase a long the way as an independent purchase. In other words, if you think the price is going to go up beyond the 1.2c that it is at currently, and you feel comfortable taking on more penny stock risk, buy. If not, don't. Pay no attention to your current holdings as past performance is no guarantee of future results.
Hope this helps.
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