## Master Trading Probabilities with the Expected Return Stock Calculator

The expected return stock calculator helps you make trading decisions in the face of uncertainty. Traders face immense uncertainty because we just never know exactly what will happen to the stock price next. But what we can often do is come up with a range of scenarios and put a likely probability on each of them. Coming up with scenarios and probabilities is more powerful than predicting a certain outcome, because we are likely to be wrong in our predictions frequently. If we instead make decisions based on the probability of certain outomes we are more likely to succeed and make money in the long term.

With the Expected Return Stock Calculator, traders can easily estimate the expected profit based on entry price, number of shares purchased, and the probability of various scenarios for the final stock price. This calculation can help you make better decisions in despite the uncertainty in the markets.

## Quickly Estimate Your Expected Profit Potential

The Expected Return Stock Calculator is designed to help you determine the expected profit based on multiple scenarios for the final stock price. By inputting the entry price, the number of shares purchased, along with the probability of up to five different scenarios for the final stock price, the calculator below gives you an expected return based on the probability of each scenario. This enables you to better assess the risk-reward ratio of your trades and make adjustments as needed.

## The Expected Return Stock Calculator:

## How the Expected Return Stock Calculator Works

Using the Expected Return Stock Calculator is straightforward. Simply provide your entry price and number of shares purchased, and then input up to 5 scenarios for the final stock price along with your estimated probability for each scenario. Make sure your probabilities add up to 100% or else the calculation will not return valid results. The calculator will then generate the expected return taking into account the probability of your 5 scenarios.

## Why Use the Expected Return Stock Calculator?

Understanding the potential profit of a trade is essential for successful trading. Unfortunately we don’t know what the ultimate stock price will be when we enter the trade, but we can often come up with a range of scenarios and estimate the probabilities of the scenarios. The Expected Return Stock Calculator provides you with a clear picture of the expected outcome based on the scenarios and probabilities you enter. The expected outcome needs to be profitable for you to win in your trading long term.

## Conclusion: Maximize Your Stock Expected Return Calculation

The Expected Return Stock Calculator is a powerful tool that can help you optimize your trading decisions and ensure you only take trades with a positive expected profit. By considering multiple scenarios for the final stock price and calculating the expected return for each, we can get a better sense of the likely trade profit compared to making a single share price prediction… Predictions are very inaccurate, so use the scenarios and probabilities method and start making better trading decisions today!!

## More Trading Calculators to Improve Your Trading Decisions

Visit our Ultimate Collection of Trading Calculators Page for all our trading calculators

- Stock Market Calculator

Project your wealth from investing in the stock market based on starting capital, returns, tax, deposits & withdrawals. The Stock Market Calculator makes it easy to set your trading goals and plan for your financial future. - Stock Profit Calculator

Calculate the profit or loss you will incur from an individual stock trade based on the entry and exit assumptions as well as your chosen position size. The Stock Profit Calculator is a great 'what if' analysis tool for your individual trades. - Average Down Stock Calculator

Calculate your average purchase price and perform scenario analysis for averaging down on stocks with our average down stock calculator. This easy calculator shows you your average price depending on the number of shares you buy at each price level. - Stock Split Calculator

Calculate the impact of a stock split on position and determine the number of shares and the share price on a split adjusted basis with our stock split calculator. - Reverse Stock Split Calculator

Calculate the impact of a reverse stock split on position and determine the number of shares and the share price on a split adjusted basis with our reverse stock split calculator. - Compound Interest Calculator

Discover our Compound Interest Calculator, designed for traders to confidently plan high level investments and project future wealth with ease including regular contributions to your account. - Stock Average Calculator

Calculate your stock average price quickly and easily for multiple purchases of the same stock with this easy to use stock average calculator. Find the average price for up to 10 purchases in the same stock. - Position Size Calculator

Maximize profits & manage risk with our Position Size Calculator! Optimize your trade sizes using 3 powerful sizing models tailored to your trading style. - Expected Return Stock Calculator

Use our Expected Return Stock Calculator to find the expected profit based on outcome scenarios for the stock. Start making confident decisions by using probabilities instead of prediction.

## Share This

Share this post with your friends!