I just want to know how do avg the price,
once its going high eg: bought 1000@ 4.03 current price 6.5
once its going down eg: bought 1000@ 4.03 current price 3.2
AND ONCE IT'S GOING FURTHER HIGH IS IT WORTH TO BUY COZ OF AVG PRICE ???
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Last edited by UKboy on Fri Sep 16, 2011 12:32 pm; edited 1 time in total (Reason for editing : Added one more line)
charith82 wrote:Once its going high averaging the price is not the correct concept. Average price concepts comes after you buying a stock if it going down dramatically.
eg if you bought 1000 X@10 your cost is nearly rs.10 per unit. (without taxes)
after it goes down to rs. 7 if u able to buy another 1000 X@7 now your average cost per unit is Rs. 8.5. that's what meaning averaging. this is the way you can minimize your loss.
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