Stock Average Up Calculator For Growing Share

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Updated On: September 29, 2024

Share Average Up Calculator, an averaging up calculator is used to calculate average price of share bought at higher price than previous ones. This technique is usually used for trending shares or if a faith persists in investor for further increase in particular share’s value. The investment during increasing price is usually termed as bull market investment. Bull market in stock is usually versatile and may even last for months or even year. Investors with lower average price or who bought share before the price hikes are more benefited.

Averaging up calculator helps investor to find out the new average after buying stocks at higher price. This application is simple and single step to calculate the overall weighted mean of previous and newly purchased shares at higher rates. The average limit up to which investors would bear can also be calculated to stay within the minimum average, not exceeding above one’s preset average in particular share.

Steps To use Share Average Up Calculator

Using Share Average Up Calculator is a simple tool which can be operated with basic knowledge.

Step 1: Enter the quantity and its respective buying price per share in each average up purchase.

Step 2: Using “Add More” button, you can add more purchases to make your calculation easier and single step.

Step 3: Press “Calculate” button to output the results. You will get new average up price along with other comparisons.

Benefits of Share Average Up Strategy

Share and Stock Market are like a moving wave having up and down. The market sometimes spikes Up and Down depending upon various factors. A well knowledged and experienced investors can make profit no matter either the stock goes higher or lower. Averaging Up strategy are quite less common tactics. It is implemented by analyzing various factors such as past market analysis, nature of share, financials or management systems of the company etc.

Share Average Up strategy is beneficial if the share price increases continuously. Let suppose that a person buys 20 shares at price of 180 each. After certain time duration, the share price continuously increases and he buys equal amount of additional shares at price of 182 each (second purchase) and 185 (third purchase) each.

Now by using average calculation,

New average price will be (20 x 180) + (20 x 182) + (20 x 185) / 60 = 182.33.

And if the price goes up continuously, he will earn profit which can be calculated by differencing the current highest price and average price.

This should be noted that, average up strategy should be employed after various analysis as it may likely cause a loss.