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”

then,

>~% = ( 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
= 1,000

it means, you can earn 1,000 if market goes down with -2% by investing 50,000.

​

NOTE:

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

More at: r/NepalStock by shaeinst

5 comments
  1. Okay genius .. tell me a simple answer:

    100 ko 10% badhera 110 pugyo share -> I buy now, now 10% le nai ghatyo and again 10% le badhyo? Am I in loss or profit ?

  2. If you bought at the peak of previous bull, current market price is much lower than it was then. It will go higher if it comes down is not true.

    Did you back test the formula?

  3. And how come -2 become 2? You can’t make profit by decrease in market. You need to short sell for that and Nepal doesn’t have that system.

    How many loss have you made happily thinking you are in profit?

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