Hi. I would like to see a way to view the performance of individual trades in the same stock bought at different times, as some might be a short position and some might be a long position on the same stock
That’s not how individual shares really work.
Within an ISA all similar shares are pooled into a single group e.g Company A shares are all grouped together regardless of when and what price you bought them. The price is averaged. (Someone correct me if I’m wrong on ISAs)
For a GIA account there are a set of rules. Shares bought within 30 days are counted individually but grouped within the day they were bought e.g if you buy shares 3 times in one day they’re grouped as a single buy and averaged.
Shares over 30 days are automatically grouped into a section 104 holding and the price averaged. There is no performance of an individual share.
Worth noting shares bought through freetrade are also not lended out
Thanks for the reply! So can you tell me, if I bought a stock couple months ago and it was performing around 100% and I decide to buy more. Then the stock shows a 20% performance in combination? Do I in essence loose profit from the previous stock that is up? Sorry if I’m asking annoying questions I’m just not fully understanding regarding buying multiple stocks at different time sand how that effects the portfolio
Once it’s past the 30 days, (or straight away in the ISA) all the shares are the same. you wouldn’t lose any profit, but it’s just averaged across all the shares.
I think the 30 day thing is a HMRC rule to stop people evading capital gains tax
You can’t really see this in the app though, you’d just see the profit averaged out regardless of the age of the shares
Thanks Dave! Do we know what the HMRC 30 days thing is called for further research?
Buying stocks in the UK isn’t the same as in the US and hasn’t been for decades. You also need to keep in mind that all shares in a company are functionally identical (tax rules excluded). share 1 of Company A is the same as share 2 of Company A, what price you bought them at (excluding tax considerations) essentially makes zero difference since they both hold the exact same value.
The tax rules around same day trading, 30 day trading and 104 holdings are really more for tax purposes than anything else.
If we consider an ISA and exclude all tax related issues what’s the difference between any share in a company? They’re the same.
Selling you’re more recent share or selling your oldest share makes no difference in your gains or losses because a share is a share.
So when your overall performance in a company has reduced because you’ve bought more shares its just because you bought more shares at a different price and the average over the number of shares has changed because the number of shares you hold has changes and the prices bought at has changed. You never ‘lost’ 80% in profit, you increased your exposure and the size of your holding in the company which changes your position overall since its spread over more shares at a different average price.
sorry if that is a bit difficult to follow, I was trying to find a way or getting it across
The monetary value of your profit has not dropped. If you were 100% up and that was equal to £100 in profit, when you buy more shares, although your percentage might now say you’re 20% up, the monetary value which is shown in brackets will still show as £100.
Note: Assuming that the share price remains unchanged.
Thank you for taking the time to explain! There’s something new to learn about every day for someone who’s green in investing.
Thank you !
Thank you very much for explaining I’m with it now ! On the same page!