In practice how would this work? You buy 10 shares, you buy 2 more, you sell 5, you sell 1, you buy 4 more etc. In order to maintain an average, the app would have to keep constant track of everything that ever happened. What if you sell everything, and years later buy the stock again, should it take the previous buys and sells into account? What if you wanted a clean slate?
It would simply be the ability to chose the way you want to display the current gain or loss on the position while it is open (in a similar way to being able to select whether you want to see a us investment gain / loss in £ or $).
Currently there is only one way, which is FIFO - which, as others have stated, skews results - making it impossible to know your true performance.
There should be other options, such as LIFO and AVCO. It’s not difficult to code this.
It should show the average purchase price of your existing holding, calculated using AVCO. That’s not hard to calculate as it updates every time you buy. Selling doesn’t change your average purchase price.
Unless you sell everything then the slate is wiped clean as your existing holding becomes zero.
Nailed it! It would be a really easy amendment, and would make the app a LOT more useful / accurate.
FIFO may be forcing the uneducated to sell / overtrade unnecessarily because they incorrectly believe they’re at a loss when they’re not.
Sorry I’m late to the party.
Agree with all of the comments above. Voted