Calculation of the potential outcome of a stock trade
Hi there. When you're considering a stock trade, do you calculate potential profit and loss beforehand, or do you focus more on price action? I recently decided to try running these calculations before a trade, and I realized it’s useful to factor in not just the entry and exit prices, but also the commissions. I’m curious—how do you usually handle this?
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When considering a new stock trade, I try not to focus solely on the projected price movement. It is helpful to first make a rough estimate of the potential outcome based on the chosen investment amount and opening price. I like the approach taken by the https://roboforex.com/beginners/start/profit-and-loss-calculator/stocks/ calculator: you can adjust key parameters and see how the calculation changes. I would recommend using such tools during the preparation stage so you can understand potential costs in advance, rather than relying entirely on mental calculations.