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📋 Purchase History Input

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Quantity
Price per Share ($)
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2nd

📊 Average Cost Calculation Results

Total Shares 0 shares
Average Cost per Share $0
Total Investment $0

💰 Target Return Calculator

Calculate your target returns based on the average cost calculated above

Results are automatically loaded or you can enter values manually

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Target return calculation results
Expected Return 0%
Expected Profit/Loss Profit $0

💡 Complete Stock Trading Strategy Guide

🔻 Split Purchasing Strategy (Position Building)

A systematic investment approach that involves building your position gradually through multiple purchases over time or across different price levels.

👍 Split Purchasing Advantages
• Reduces timing risk through diversified entry points
• Lowers average cost when buying during market declines
• Allows for better capital management and risk control
• Provides flexibility to adjust strategy based on market conditions
👎 Split Purchasing Disadvantages
• May increase transaction costs due to multiple trades
• Requires discipline and systematic approach
• Can miss opportunities if market moves quickly
• Needs sufficient capital reserves for multiple purchases

🔺 Pyramiding Strategy (Averaging Up)

An aggressive investment strategy that involves buying additional shares during upward momentum to maximize profits.

👍 Pyramiding Advantages
• Actively capitalizes on upward momentum
• Maximizes profits during bull markets
• Implements trend-following strategy
• Suitable for growth stock investments
👎 Pyramiding Disadvantages
• Increases risk due to higher average cost
• Risk of significant losses during corrections
• Difficult to time entries accurately
• Risk of entering overbought territory

❓ Stock Average Cost Calculator FAQ

Q1. Why is calculating average cost important?

Average cost serves as the baseline for your investment returns. Knowing your exact average cost helps you determine when you're profitable and when you should consider cutting losses. Without accurate average cost calculation, it's difficult to assess your true investment performance, especially for multiple purchases.

Q2. What should I consider when using split purchasing strategy?

Split purchasing involves buying shares at different times or price levels, so strategic planning is essential. ①Ensure the company has solid fundamentals ②Maintain appropriate position sizing relative to total portfolio ③Set clear entry and exit criteria beforehand ④Ensure sufficient cash reserves for multiple purchases ⑤Consider transaction costs when planning multiple trades.

Q3. Should I include fees and taxes in average cost calculation?

For accurate profit/loss calculation, you should consider fees and taxes. Actual purchase amount = Stock price × Quantity + Trading fees. When selling, you should also factor in selling fees and taxes. This calculator focuses on basic average cost calculation.

Q4. How many purchases should I make for optimal results?

Split purchasing is typically effective with 3-5 separate transactions. Consider ①Risk diversification benefits ②Ease of capital management ③Reduced psychological burden. Too many purchases can make management unnecessarily complex and increase transaction costs.

Practical Split Purchasing Methods:
• Ratio Distribution: 30% first purchase → 30% second → 40% third with progressive increases
• Price Level Distribution: Additional purchases at 5-10% decline intervals
• Time Distribution: Purchases at regular intervals (e.g., 2-4 weeks) to reduce timing risk
• Cash Management: Keep 20-30% of total planned investment as reserve funds

When implementing split purchasing, monitor average cost changes at each purchase point and continuously review predetermined stop-loss and target levels. Consider planning purchases by price levels for systematic execution.

Q5. When should I recalculate my average cost?

Recalculate your average cost after every new purchase. Also adjust your average cost when corporate actions occur, such as dividends, stock splits, or bonus issues. This calculator provides real-time average cost calculation, so you only need to input your purchase details accurately.

📋 Calculator Usage Guide and Input Instructions

💯 Quantity: Enter the actual number of shares you own (e.g., 10, 100, 1,000 shares)

💰 Price per Share: Enter the actual price paid per share (e.g., $50.00, $25.50)

➕ Multiple Purchases: Enter each purchase in separate rows for automatic weighted average calculation

⚡ Real-time Calculation: Average cost, total investment, and share count update automatically as you type

🔢 Number Formatting: Automatic comma formatting for easy reading of large numbers

📊 Average Cost Calculation Formula and Real Examples

Basic Calculation Formula

Average Cost = Total Purchase Amount ÷ Total Shares
Total Purchase Amount = (1st Quantity × 1st Price) + (2nd Quantity × 2nd Price) + ...

💡 Split Purchasing Strategy Real Calculation Example


📈 Stock A Purchase Scenario:
• 1st Purchase: 50 shares × $70.00 = $3,500
• 2nd Purchase (10% down): 100 shares × $63.00 = $6,300
• 3rd Purchase (15% down): 150 shares × $59.50 = $8,925

📊 Final Calculation Results:
• Total Purchase Amount: $18,725
• Total Shares: 300 shares
• Average Cost: $62.42 (11% discount from initial price achieved)

🎯 Break-even Point: Profit when current price > $62.42, loss when below
🚀 Target Setting: For 20% profit target, consider taking profit at $74.90
⚠️ Investment Warning: This calculator is a basic average cost calculation tool. In actual investing, you should also consider trading fees, taxes, slippage, etc. All investment decisions should be made based on thorough analysis and at your own responsibility. Past performance does not guarantee future returns.