Wednesday, February 8, 2012

How to calculate the percentage return a stock will fetch the next day?

There is no way to "calculate" (predict) stock behavior in this manner.How to calculate the percentage return a stock will fetch the next day?
If I knew that I would beat Warren Buffet hands down!



On the Indian bourses, there is an upper/lower circuit, some shares have 5%, some 10 and the others 20%. So you know you cannot get more than that.



However, there is an exception: a share on its listing day is free of the filter. Sky, so to say, is the limit.How to calculate the percentage return a stock will fetch the next day?
When you buy a stock = (price prevailing at the time of transaction + brokerage) x number of shares = A

When you sell a stock = (price prevailing at the time of transaction + brokerage) x number of shares = B

Percentage return { If it is A more (loss), B more (gain)}

= (B-A)x100/A

Other than this for maintenance of Demat, trading account etc., some expenditure will go.

You will get small gain if the raise is more than 2% on the next day. It is better to watch for longer time to get substantial gains. Hope this clarifies the issue.

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