# How to make money from Stock Trading Quick Tip: The Math that Slaughters Traders

How to make money from Stock Trading Quick Tip: The Math that Slaughters Traders

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This is a concept that all traders must understand. The trickiest part about all of it is the seemingly “obvious” nature of the numbers. But when you stop and take a closer look, you will see that for those people trading the markets, it can turn a bad situation into a total disaster.

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How to make money from trading Stock Trading Math,Learn to Trade,Calculate Gains,Calculate Losses,Options Trading Math,day trading strategies,stock trading strategies

Tags: Calculate Gains, Calculate Losses, day trading strategies, learn to trade, Options Trading Math, Stock Trading Math, stock trading strategies

this is a great point …that a lot of new traders don't know… and not many people talk about from my experience…. great job man

10% loss needs a 11.1% to recover. 20% needs 25%. 30% needs 42.9%. 40% – 66.7%. 50% – 100%. 60% – 150%. 75% – 300%! Chapter 1 in technical analysis for dummies.

i feel this was missed. ten divided by 2 is 5. 5 divided by 2 is two fifty. when you add that half to the 5 it's 7.50. so you need the other half of the five.

This is basic math. If you need someone to explain this to you, you should not be risking your money in the market and go work at MCD.

well, stocks don't move in percent but in ticks. If you're 5 ticks down you need 5 ticks to break even again, nothing paradox about that.

Not sure if you are full of crap or just a plain dumbass………..who the hell thinks the way you just explained? Go back to school you idiot!

I have been trading for years and at NO time did I think that if I bought in at $10 and it went to $5 it would need to go back up 50% which is ($7.50) to break even nor have I ever met anyone who thought that way! SMH…anyone who practiced this I can assure you aren't trading for very long! I would hope you are just full of crap and you're not actually teaching about the stock market!

Never thought of it that way. If another investor got in at $5 and it went up $7.5 then he made 50%. Think of it that way to the transsexuals that disagree with him.

I would have thought that anyone that doesn't find this completely obvious and intuitive should not be trading.

Great video.

great lesson

This feels very applicable for options trading. Thankfully by reminding myself by watching videos about it I've improved my risk management

OMG!!!!!!! Seriously??????

I have a love and hate relationship with math

It looks complicated but when someone helps you with it… It's so damm simple…

Needs to go up 100% to make up for a 50% loss! Tough Math Lesson! lol

I remember reading this same example in a book. Either how the stock market really works, or be your own stock broker. I tell it to people sometimes, plus I add that fact that you also need to add in the cost of the trade on each side, which is also quite big in percentage terms when trading in small amounts. Thanks for the reminder. I love to stumble across things like this, things can't be drilled in too much when they are this important. Cheers Clay. I'll be joining you soon.

well it looks like 50% of 10 is 5, therefore 50% of 5 is what only, 2.5, which equals the 7.5. the percentage of what ever you are working with, so, when you lose and your stock goes down, its a smaller amount you are throwing percentages at. so yeah very tricky… thanks for pointing out the simple aspect… I wasn't clear till now.

🙂

Ohk People actually have such problems—-are all traders 8 year olds nowdays

Wow I overthought the user comment like crazy. I can't believe it was really that simple, my intelligence is not insulted but my pride of humanity has been. How can this be a difficult concept for anybody? 🙁

Old video, new question. So if I buy 10 shares of stock at $10 then it dips to $5. My worth is $50. If that stock goes back up to $10, my worth isn't $100 again? 10 shares at $10 = $100 right? Forgive my ignorance please. Brand new to stocks.

It is because you can't draw straight. Your column is tilted to the left and unstable.

I'm emotional… … … hi he ha

I can really tell claytrader knows a lot about charts.

If this was not already obvious, you deserve to lose every dollar.

It's tricky if you ride the short bus. LOL!

Good video. It's true though that we sometimes view in absolute amounts, not %. A $5 drop in price will then require a $5 increase in price to return to starting point – nothing too screwy there

what if you buy sell at same time can one of the opened trades reach more profit then the losing one in total?

Stock math

If drops 50 % but rises 50% it is 75 not 100

If 50% drop you need 100% to get back at dame price

I for one definitely didn’t put this into perspective . Recently I got into trading and have great instinct in the market trends but not so sharp with some of the math like this ! Thank u . And here’s big F U to to every one saying ‘ ohhhh you shouldn’t be trading if this wasn’t obvious to you ‘ 👾💄🤔😝😎🤓🧐🤨

Is the 50% of 5= 7.5?

Sometimes we do miss some simple points, even simple arithmetics. Thank you for this video and please some more videos on trading maths.

I'm learning alot from this guy

Wow… I genuinely thought I was right, thank you man I appreciate it !!!

🙄

Maybe rounding down your average will work if you are selling short.