Calculating position size quickly

J

jimbogf

I hope this isn't a dumb question. Is there a way to calculate position size quickly in my head without having to take my eyes off the screen and using a calculator while daytrading? Every second counts.

There have been more than a few times I've seen a setup in my watchlist and scrambled to calculate a position size and make an order only to see the ask get eaten up in the 10-20 ish seconds I've taken to make an order.

Example: I want to buy around $8k worth of shares of "xyz" at $23.27 What is the fastest most efficient way to calculate how many shares I need? Preferably in my head. It's easy to calculate a 1-3% gain in your head, how about position sizing?
 
Quote from jimbogf:
----calculate position size quickly....
----buy around $8k worth of shares of "xyz" at $23.27....
----efficient way to calculate how many shares I need?
----Preferably in my head.
More...
?..... Round the price up and down to an "easy number" to divide. For example, instead of $23.27, round the price to $20 and $25 and then do the division. :cool:
 
Quote from jimbogf:

I want to buy around $8k worth of shares of "xyz" at $23.27 What is the fastest most efficient way to calculate how many shares I need? Preferably in my head. It's easy to calculate a 1-3% gain in your head, how about position sizing?
More...
Seriously? I think you should be more concerned about whether $8K is the right amount to invest than the fastest way to calculate how many shares equal the $8K.
 
Quote from Trader.Fighter:

Excel window or iPad spreadsheet with round number calculations for easy determination or some sort of semi automation.
More...

+1 here. An excel spreadsheet where you just plugin a few numbers can work wonders here.
 
Quote from kut2k2:

Seriously? I think you should be more concerned about whether $8K is the right amount to invest than the fastest way to calculate how many shares equal the $8K.
More...

It was an... example, really dude?
 
Quote from nazzdack:

?..... Round the price up and down to an "easy number" to divide. For example, instead of $23.27, round the price to $20 and $25 and then do the division. :cool:
More...

8k divided by 20 = 400. some where just below 400 then around 360-380 shares.
I've been too dependent on my calculator. Ha
 
You must log in or register to reply here.
Back
Top