TradeStops customers sometimes make multiple purchases of the same position at different times.
Here’s a quick way to handle those occasions:
Be aware that when you synchronize your accounts with TradeStops, all purchases of a single stock will pull in as one position showing the total shares owned.
New purchases of the same stock will update the number of shares automatically in a synchronized account, but will not update the entry price/cost basis.
This is also the case for shares purchased through reinvested dividends.
Most investors using TradeStops choose to edit their entry price with an average of the prices paid for the position.
Use the following method to average your entry price:
100 shares purchased at $50/share for total cost of $5000
50 additional shares purchased at $70/share for total cost of $3500
($5000 + $3500) / 150 shares = $56.67
This figure represents the weighted average price per share, and can be entered into the “Entry Price” field.
Another option is to create a manual position entry for each purchase/reinvestment.
If you are manually adding positions into your account, you can simply enter a separate position for each purchase lot and track them separately with their own alerts.
Or you can edit the existing position, to increase the alerts and adjust your entry price to a weighted average.
Details on editing positions can be found in the article
Editing Positions.
Please do let us know if you found this information helpful. And if you have a question you’d like answered in our Thursday Tips feature, please send it along to [email protected].
To Your Investing Success,
Your TradeStops Customer Success Team
