How to use a trading calculator.

A free video tutorial from Corey Halliday
professional trader and educational instructor
Rating: 4.3 out of 5Instructor rating
9 courses
37,552 students
How to use a trading calculator.

Lecture description

Let's take a look at what a trading calculator looks like.

Learn more from the full course

Start Trading Stocks Using Technical Analysis!

Learn the secrets of professional trading from a former stock broker, and make profits investing today!

04:07:29 of on-demand video • Updated March 2017

Trade stocks like the pros!
Avoid the common mistakes that new traders tend to make.
Calculate support & resistance to measure risk vs. reward.
Learn the phychology behind investor decisions.
Identify the 4 stages of a trend.
Buy & sell stock with confidence!
English [Auto]
We have a trade calculator that you have access to online, so as an investor, you member, you can come in and we have it in a couple of different formats, depending on what version of Excel you're running on your machine. It runs through Microsoft Excel after you download the calculator, which again is in our bonus material. We have a lot of bonus material online that you get access to as a member. You download the calculator first, you put in your account size from there. It now knows how to calculate the rest. So any trade you take, you just fill it out. Let's say I'm going to trade ABC stock, so I'm going to buy ABC and I'm going to go along. ABC stock, so I'm going to put in long here and I'm going to buy it on. Today, February 29th. You know, and the reason I'm buying is because of a breakout or whatever and the time frame on the trade, I think this is a swing trade. I'll be in it for a few days. My entry price, 40 bucks per share, my stock price. Thirty eight, my target, forty five, my lot size, let's see what a hundred shares would do for me. So I punch in this information now your size you're going to tweak because you're going to put in you know, you might guess at one hundred, but it's now going to fill out all of the rest of this information for you. It's going to tell you exactly what your reward to risk is and how much money you have invested, which in this case, if you bought one hundred shares at 40, you'd have four thousand invested. And then it would tell you, based on your ten thousand account size, that's 40 percent of your account. So this number would change to 40 percent. It would tell you that your potential gain one hundred shares at five. So it'd tell you your potential gain is five hundred bucks. And to tell you your risk is two hundred dollars and it would tell you that you're waps. Let me go back one screen. It would tell you that your risk was two hundred and your reward was five hundred. So it would tell you that your reward, the risk was two point five to one is what this reward to risk would show. So in other words, it's going to fill all of that out, all of that information, you're going to look at it. You're going to say, you know what, 40 percent of my account in one trade is too high. So you're going to nudge this lot size and you're going to change it to fifty shares. You know, or whatever, now it's going to say, OK, now you have two thousand invested instead of four thousand, your reward to risk the same, but now you only have, you know, 20 percent of your account invested. That's good. Your potential gain. You can't make 500 bucks. You can still make two hundred and fifty. You're not risking two hundred bucks now. You're only risking, you know, hundred bucks. So you cut your reward down, but you cut your risk down by cutting down your position size. When it's time to get out, you put the exit date, you put the reason this is like a journal helps you to keep track of your thoughts, what you were thinking, your exit price. Once you put in the exit price, then it calculates all the rest of this tells you here's what you made or lost. Here's the percent that that was a gain or loss, it puts it in the winter loss column tells you how many calendar days you're in the trade and then you can put any corrective actions if you made a mistake or you want to remember things that you did really well, you could put those in there, look at how cool this is. Now, you have a tracking tool that literally is tracking your success rate based on wins and losses, that's tracking your profit and loss in gains in dollar amounts and in percentages. Now, you can start to really run some statistics. You can say, well, what strategies am I doing? Well, which ones am I doing? Poorly by keeping track of the details, you will become a better trader, plain and simple. If you don't keep track of anything, then you're not even going to know where your gains and your losses are coming from. You're not going to know corrective actions because you're not even paying attention to what you're doing. Very, very important that you get in there, you download the trade calculator and you start to utilize it. As you do that, you will become a better trader. What's next? Bullish trading strategies. We get into breakouts and continuation patterns and pullbacks. Very, very good information. You're going to enjoy it. Very important as you learn to trade that you learn to trade the right way. So I hope you're enjoying this program. We'll see you next time. Goodbye, everyone.