Is there an accurate calculator that any of you have used that lets you know how much you need to buy when you're trying to average down in order to reach a certain number?
For example, if your average share price is $1.20, but you want your average to be a $1.05, and the current price is $1.05. How many shares would you need to buy at $1.05?
algebra my friend...one of the few useful levels of math past elementary
x = desired new agv price
y = original # of shares you own
c = your current avg cost/share
z = # of new shares you need to buy
n = new price you're considering buying at
your example would never work as you can't avg down to the current lower price while having shares above the current price, but the formula is
x = (yc+zn)/(y+z) ---> solve for Z
if you had y=15 shares at c=$1.2/share, you want to buy z shares at $1.05 for a desired new avg of x=$1.1
1.1 = ((15*1.2)+ 1.05z)/15+z...z = 30 shares you'd need to buy @ 1.05 to average down to 1.1
Yes i typed all that out because i'm a nerd
