suppose a stock fall with “~%”, you want to make profit “P” and can invest money “I” i.e
change percentage = ~% (actually its negative i.e when stock fall)
profit you want to make = “P”
total money you want to invest = “I”
>~% = ( P / I ) x 100%
for example, a stock price fall with -2% and you have 50,000 to invest then you can make profit of
~% = ( P / I ) x 100%
or, p = ( ~% x I ) / 100%
= (2 x 50,000) / 100
it means, you can earn 1,000 if market goes down with -2% by investing 50,000.
it’s suppose that market will definitely rise to previous state. that’s why it calculate minimum minimum you can earn.
i know it’s DUMB but works for me