Trading and Investing in stocks only mean one thing, you will be dealing with numbers all the time. As the main principle of stock is to "Buy Low - Sell High", it is difficult to determine if a stock that you are planning to buy is a good deal or not. Especially, if you already have that particular stock in your portfolio.
So how do go about it? The answer is to do some AVERAGING, if the old average price is much higher than the new average price then it is a good buy since you are averaging down your stock price.
Below is a PSE Calculator that I've created to save you the trouble of manually calculating the amount.
COLFINANCIAL Average Down Calculator
Instruction: Do not add a comma when inputting values. For example, you need to enter 1700 instead of 1,700 to calculate the values correctly.If you have a hard time deciding when to sell. The COLFinancial Buy and Sell Calculator is for you.
Read the article "How To Calculate The Weighted Average Price" to know how it is computed.
Stay tuned also for the mobile app version of this calculator. For the meantime, just visit this post every time you want to use the calculator.
I am hoping that it can help someone out there.
- Your Life In Perspective -
