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Topic: Need some stock market math help
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Arun Jayapal

Posts: 3
From: Chennai
Registered: 7/9/08
Need some stock market math help
Posted: Nov 21, 2009 10:27 PM
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I've a certain investment budget. I am looking to invest in the share market such a way that it is profitable for me. The challenge is given the investment budget, how do I find the appropriate values of share prices I must buy, and in what quantity I must purchase them so that I can hit my investment target.

The primary math goes like this:

Say share price is X,
Quantity I buy is Y
On a purchase the following calculation is used:
X*Y + (X*Y) * (0.5/100) + 20 = t1

The problem is in the 2nd expression: if (X*Y) * (0.5/100) < 25, then the value 25 is used in the above calculation

On a sell the same principle holds. Except the calc is now like this:

X'*Y - (X'*Y) * (.5/100) - 20 = t2, where X' is the new stock price.

Now obviously I an looking for t2-t1 = k which signifies a gain. Again if (X'*Y) * (.5/100) < 25, the value of 25 is substituted...

Now my objective is depending upon the value of k, I want to arrive at a favourable *range* of values for X and Y...



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