Fixed Dollar: Stock Calculator Model

Why? The Fixed Dollar Money Management Model reverses the equation for Fixed Units and the calculation determines the number of stocks or security units you'll purchase given the amount of investment capital you're willing to put down as well as the price of the each unit of the investment vehicle.

Stock Calculation

Fixed Dollar Money Management Model Formula: Quantity of Stocks to Purchase = Total Amount of Capital Planning to Invest/Stock Price
The total amount of capital you have prepared to invest divided by the stock price gives you the quantity of shares you can afford to buy.
Inputs

• Stock Price
• Total Capital

Outputs

• Number of Stocks to Buy

Fixed Dollar Case Studies

Examples of the various calculations:
These examples exhibit the standard long trade calculation. (buy low, sell high) If you would like to calculate a short trade, simply select the "Short” button and input the relevant numbers.

• Standard Transaction (Default)
• Leveraged Standard Transaction
• Transaction with a Flat Commission Fee
• Leveraged Transaction with a Flat Commission Fee
• Transaction with Different Brokerage Fees on Buy/Sell
• Leveraged Transaction with Different Fees on Buy/Sell

Standard Transaction

INPUTS:
Model Used : Fixed Dollar
Position Type : Long
Total Capital : $ 1,545.00
Price : $ 17.45
Stop : $ 15.50
Profit Target : $ 18.56

OUTPUTS:
Quantity : 88
Position Size : $ 1,535.60
Capital Risk: $ 171.60
Theoretical Profit : $ 97.68
Risk Reward Ratio: 0.5692

Leveraged Standard Transaction

INPUTS:
Model Used : Fixed Dollar
Position Type : Long
Total Capital : $ 1,545.00
Price : $ 17.45
Stop : $ 15.50
Profit Target : $ 18.56
Leverage : 5 %

OUTPUTS:
Quantity : 1,770
Position Size : $ 1,544.33
Capital Risk: $ 3,451.50
Theoretical Profit : $ 1,964.70
Unleveraged Value: $ 30,886.50
Risk Reward Ratio: 0.5692

Transaction with a Flat Commission Fee

Leveraged Transaction with a Flat Commission Fee

INPUTS:
Model Used : Fixed Dollar
Position Type : Long
Total Capital : $ 1,545.00
Price : $ 17.45
Stop : $ 15.50
Profit Target : $ 18.56
Leverage : 5 %
Brokerage Fee $ 19.95

OUTPUTS:
Quantity : 1,770
Position Size : $ 1,544.33
Capital Risk: $ 3,451.50
Theoretical Profit : $ 1,964.70
Unleveraged Value: $ 30,886.50
Risk Reward Ratio: 0.5692
Break Even Price: $ 17.47

Transaction with Different Brokerage Fees on Buy/Sell

INPUTS:
Model Used : Fixed Dollar
Position Type : Long
Total Capital : $ 1,545.00
Price : $ 17.45
Stop : $ 15.50
Profit Target : $ 18.56
Brokerage Fee $ 19.95 / 0.1 %

OUTPUTS:
Quantity : 88
Position Size : $ 1,535.60
Capital Risk: $ 171.60
Theoretical Profit : $ 97.68
Risk Reward Ratio: 0.5692
Break Even Price: $ 17.70

Leveraged Transaction with Different Fees on Buy/Sell

INPUTS:
Model Used : Fixed Dollar
Position Type : Long
Total Capital : $ 1,545.00
Price : $ 17.45
Stop : $ 15.50
Profit Target : $ 18.56
Leverage : 5 %
Brokerage Fee $ 19.95 / 0.1 %

OUTPUTS:
Quantity : 1,770
Position Size : $ 1,544.33
Capital Risk: $ 3,451.50
Theoretical Profit : $ 1,964.70
Unleveraged Value: $ 30,886.50
Risk Reward Ratio: 0.5692
Break Even Price: $ 17.48