RE: At last5 Sep 2024 18:14
Mary
The problem I have with this is firstly this approach would mean potentially still selling at an overall portfolio loss, for example you have 50k rank at 78, you buy 20k at 73 to reduce your average, you sell 10k at a spike of say 75, you're in profit on the last buy and sell, but the portfolio accounting records it as a loss, so it's confusing somewhat.
Secondly, I have tried this several times on HL or AJB, and when I've bought back cheaper having sold on a spike , quite often it's within 30 days so their systems actually record the cost as your sell price which was higher, which results in the portfolio on that holding suddenly showing as significantly in the red.
The only platform that records it as you have traded and ignores the tax rules ( which is your business anyway, is II.
To be honest you would have to be a miracle trader to be able to always be in the green on a holding whilst doing that approach.
EG I had 50k mcg shares at over a quid, I doubled down at 58 last year then sold those 50 at 78 some months later, but although I was up on that purchase, I still sold at an overall loss as far as the trading platform goes, and if you are doing it multiple times on that particular platform, you lose track on exactly what you're position is.
But with II you can and I'm trying this out.