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Target lookout for RTOs
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jeremyow
Master |
05-Apr-2017 11:23
Yells: "Passionate business investor" |
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You are most welcomed Limthiamghee! It is my pleasure to help! 
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limthiamghee
Member |
05-Apr-2017 11:18
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Thank you so so much for the advices... Sincerely appreciate it.!
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jeremyow
Master |
05-Apr-2017 11:15
Yells: "Passionate business investor" |
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Yes, thanks to Andante and MichaelSchenker' s sharings and based on their sharings, we will get an average price for the total number of shares you now hold, that is 10,000 shares at $2.25 per share. So, your selling now will be with reference to this average price you hold your shares. If you sell all your shares at higher than this average price, you make an overall profits and if you sell below this average price, you make an overall loss. This should be the way of calculation for determining your overall profits and loss. That is why we always seek to buy low and even lower as people call it averaging down. This is because the average price of your shares will decrease if you keep buying at lower and lower prices. Conversely, if you keep buying at higher and even higher prices, this is called averaging up and your average price of the total shares will go higher. We will not break up the shares into the individual tranches you bought previously and look at them individually as the trade transactions over the market trading are not done this way. When you decide to sell your shares, it will just decrease by that amount of shares you sold. More importantly is to make sure you really have the number of shares you are selling (can be checked from your CDP account statement) or else it will be considered as a naked short sell which will carry hefty penalty if you accidentally sell shares you do not own in the first place. The profits or loss will still be with reference to the average price of the shares. For example, now you hold 10,000 shares at average price $2.25 per share. You then sell 4000 shares at $2.50. Your profits made = 4000 X ($2.50 -$2.25) = $1000. Your shares remaining after sell trade is 6000 shares at same average price of $2.25.  
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limthiamghee
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05-Apr-2017 11:12
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Oop! Simply Expert! Bingo!!!
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ken777
Veteran |
05-Apr-2017 11:07
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You are right.. it so simple lol (2.00 + 2.50) / 2 = 2.25 10000 @ 2.25  Let say sell at 2.8 half (2.8 - 2.25 ) * 5000 = Your profit... You buy GLP right
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MichaelSchenker
Master |
05-Apr-2017 11:02
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Let' s try some paper play.. Say, if down the road, 2 tranches are to be sold, eg: (a) 5000 shares sold at 2.40 and another (b) 5000 sold at 2.80. (For simplicity, we will only factor in principal sum) (a) If it is deemed that he sold the 5000 bought at 2.50 he would have made a nett loss of $500 (b) And, the remaining 5000 bought at 2.00, after he sold, he would have made a nett gain of $ 4000 Overall, he made $ 3500 by selling the entire 10000 shares Now, the reverse (a) If he sold the shares that he deem bought at 2.00, he would make a nett gain of $ 2000 (b) And after selling the remaining deemed bought at 2.50, he would make a gain of $ 1500 Therefore, total gain is still $ 3500 for selling the entire 10,000 shares    
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limthiamghee
Member |
05-Apr-2017 11:01
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Thanks!
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andante
Member |
05-Apr-2017 10:42
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Based on my knowledge, the prices of the XYZ will average out i.e. 10000 at $2.25 each
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MichaelSchenker
Master |
05-Apr-2017 10:25
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(I' m not the expert here, just sharing an opinion) It really does not matter at what price you bought in. And there is always an average price. The shares that you bought will not have a ' price tag' . It' s value is always based on market value. You win some, you lose some.  If you try to work out your sums on paper play, you will get the same results no matter which tranche you shares you sell first, bearing the selling price and volume being constant.    
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limthiamghee
Member |
05-Apr-2017 10:14
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Dear Experts, I am  raw  newbie to Share, I would like to seek your advice on  selling of shares. If I am holding on  5000 XYZ Shares which I bought up  at  price said $2.00. Subsquently, I bought  another 5000 similar  XYZ shares at 2.50  much later. If I am selling now, how do I know which one will be sell off first, the $2.00 or $2.50?. Definitely, I am looking at selling the $2.00 rather than the $2.50 I am using self online trading platform. Your kind advice is very much appreciated! Thank you   |
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