How to Distribute the Amount Wisely in Stocks to make Profits?
I am always posed with a situation where I have to distribute the Investing Amount in the Selected Shares/Stocks.
Just to give an example:
Lets say If I have $ 10000 and I have selected three Stocks to be bought with this amount..
STOCK-NAME--PRICE------PROFIT
Stock I---------$ 32--------$ 37
Stock II--------$ 55--------$ 62
Stock III-------$ 77--------$ 81
I want to get a Logic ,which gives me the Best Quantity of Stocks for each Stock in the given Investing amount and which yields the maximum Profit...
Though my main goal is to make profits but it is also to buy all the three stocks maybe not in the same quantity..
Lets Say If I buy Stock I - 100 nos then I would have spend $ 3200 and Then I would remain with $ 6800 for the other two , then lets say If I buy 70 of Stock II then I would have used $ 3850 and then with the remaining amount i.e. $ 10000 -($ 3200 + $ 3850 ) = $ 2950.
With $ 2950 remaining I would be able to buy $ 2950 / 77 = 38 Stocks of Stock III.
Now I want some helping hand to understand why I have to buy a particular Stock more than the other...
I am also looking for any logic which can be expandable if more no of Stocks are included as well as one more criterion of Risk is Induced alongwith the prices as follows.
STOCK-NAME--PRICE------PROFIT---RISK
Stock I---------$ 32--------$ 37-----HIGH
Stock II--------$ 55--------$ 62-----MEDIUM
Stock III-------$ 77--------$ 81-----LOW
I thinks this question also involves some mathematical acumen....
Warm Regards
I am always posed with a situation where I have to distribute the Investing Amount in the Selected Shares/Stocks.
Just to give an example:
Lets say If I have $ 10000 and I have selected three Stocks to be bought with this amount..
STOCK-NAME--PRICE------PROFIT
Stock I---------$ 32--------$ 37
Stock II--------$ 55--------$ 62
Stock III-------$ 77--------$ 81
I want to get a Logic ,which gives me the Best Quantity of Stocks for each Stock in the given Investing amount and which yields the maximum Profit...
Though my main goal is to make profits but it is also to buy all the three stocks maybe not in the same quantity..
Lets Say If I buy Stock I - 100 nos then I would have spend $ 3200 and Then I would remain with $ 6800 for the other two , then lets say If I buy 70 of Stock II then I would have used $ 3850 and then with the remaining amount i.e. $ 10000 -($ 3200 + $ 3850 ) = $ 2950.
With $ 2950 remaining I would be able to buy $ 2950 / 77 = 38 Stocks of Stock III.
Now I want some helping hand to understand why I have to buy a particular Stock more than the other...
I am also looking for any logic which can be expandable if more no of Stocks are included as well as one more criterion of Risk is Induced alongwith the prices as follows.
STOCK-NAME--PRICE------PROFIT---RISK
Stock I---------$ 32--------$ 37-----HIGH
Stock II--------$ 55--------$ 62-----MEDIUM
Stock III-------$ 77--------$ 81-----LOW
I thinks this question also involves some mathematical acumen....
Warm Regards