LogFAQs > #948975789

So I have a question

Let's say you have 1000 shares of a company, then you buy 500 more shares and sell those 500, in this case we'll say for a gain, without touching the first 1000 shares. Does your average on the first 1000 shares go down or is it unaffected?

I thought in this scenario, it would cause your average to go down, but now I think, using TD Ameritrade's platform at least, your average is the average of whatever shares you still currently have, as you've already made money on the other shares and the trade is closed, which actually makes a lot of sense.

Basically, I've been making 500 to a grand or so every other day just flipping extra AVCT warrants while I keep a baseline of 50,000ish. I've noticed my account is continuing to get higher so I know I'm making money, but the day after selling (why it takes this long to register I don't know) my average will go back up. I think it's just Ameritrade making this more confusing than it needs to be with the random timing of changing your average. Makes total sense that your average wouldn't include closed positions now that I think about it. Plus I can still use the profits from these swing trades to buy even more and average down to hold long term.

E: oh yeah and if you remember I did fuck tax lots and wash sale rule stuff previously but now I've got that shit all ironed out and have been selling LIFO. so yeah I am making money unlike when I was FIFO selling old shares I bought high

---

- Blur -
Welcome to your Divinity.