Allstocks.com's Bulletin Board: buying low to cover a high

This is topic buying low to cover a high in forum General Investing Topics at Allstocks.com's Bulletin Board.

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Posted by biker0962 on :

okay I watched cramer the other night, lets say I buy 50,000 shares at .20 and now it drops down to .10

and lets say I buy 100,000 at .10 now that gives me a total of 150,000 are my shares worth .15

also should I just buy double the amount of my original share purchase or do I need to go triple

I hope Im making sense

Posted by Ace of Spades on :

quote:
Originally posted by biker0962:
okay I watched cramer the other night, lets say I buy 50,000 shares at .20 and now it drops down to .10

and lets say I buy 100,000 at .10 now that gives me a total of 150,000 are my shares worth .15

also should I just buy double the amount of my original share purchase or do I need to go triple

I hope Im making sense

Are you talking about figuring out the average cost per share????

Here is a link for that....

http://www.investorglossary.com/average-price-per-share.htm

and here is a link for a calculator that will do the work for you...

http://www.wcc.net/~fireplay5/trading/averagedown.html

http://www.wcc.net/~fireplay5/trading/averagedown.html

In your case...50k at .20 is worht $10,000 and 100k at .10 is worth $10,000 also....the total value of you purchases is $20,000....so you divide that buy the total number of shares which is 150k....

the average price per share is 13.3 cents

Posted by biker0962 on :

thanks ace, that link answered my question