Is there an easy way to calculate how much to add to a position if I know how much I want to lose from it if it drops a certain percentage?
For instance, I entered XYZ stock and am up $1000. Now I want to add to the position but I want to put a stop loss at 15% and only lose $800 maximum. That way I still end up with a $200 profit. How can I calculate how many more shares to buy?
More information from comments:
To keep it simple let’s say I bought 10 shares of XYZ at $100 per share and now it’s trading at $150/sh. So I am up $500. Worst case scenario if the stock drops 15% after I pyramid I want to come out with a 10% profit. How many new shares do I acquire if I want to set a new trailing stop loss at 15%?