Percentage Gain or Loss on an Investment - Calculation and a few personal tips.
I don't know how many of you maintain a datasheet of your investment but it's very effective. You can have a cumulative idea of where is your money going, the pattern of investment, and many more. But doing this from the early stage of your investment is not easy. Many of us don't give it a second thought and randomly put our money here and there. Tell me I'm not the only one.
Later, I understood how much important it is to do things with pen and paper. Nowadays there are many trusted apps also where you can input your amount and they will do the calculation and make a datasheet for you.
I'm going to share how I do it easily so you can follow.
To calculate the percentage gain on an investment, investors need to first determine the purchase price. For example, if you are buying $500 crypto that would be your initial costs. The same applies to stock or real state. The amount you are reinvesting needs to calculate separately.
Then the purchase price needs to be subtracted from the selling price to obtain the gain or loss on the investment. Divide it by the original amount of the investment or purchase price and multiply the result by 100 to get the percentage change in the investment.
The equation will look like this.
Investment percentage gain = Price sold - perchage price / original amount * 100
The calculation is very easy but doing this in every step of our investment is not.
Why I am saying so?
I'm mostly talking about the crypto perspective. Because in crypto the price varies from time to time. If you are a regular treader, it's hard to track everything and remember the initial price of your investment. We can only have a wholesome idea about if we are gaining or losing by looking at the portfolio. But having the exact number is always better than this, right?
Investing does not come without costs, and this should be reflected in the calculation of percentage gain or loss. Otherwise, there's a high chance that we would unknowingly make the same mistake again and again. Also, we may lose the chance to win a small amount if we don't track what is giving us better earnings.
For me, people who have invested in multiple sectors need this most to do a comparison and have a sheet to take a glance at where they are gaining and losing their money.
It's our money, we need to take care of it.
Thanks for visiting my blog.
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