[FAQ] Seeing losses even if the average price is lower than market price

>>FREE Download - Quick Start Guide to Investing in Phil stock market! Click here!<<

 

For COL users, may tanong lang po ako about avg price.

Bought PGOLD @ 32.90. Showed Average Price @ 32.9971 (because of the charges)Now market price is @ 33, which is greater that average prcie @ 32.9971and still registered as -0.79% loss?? Alam nyo po kung bakit negative parin even though Avg Price >MArket Price?

The answer is that the new COL Financial website already shows you the exact NET amount of money you’d receive if you decide to sell any of your holdings at any time at their respective prevailing market prices.

That means the gain/loss column data already reflects all the selling charges, fees and taxes in case you decide to sell it. And it is because of these charges during the selling assumption that make the loss value even though the market price attained a level bigger than your average price.

The key point to learn here is that while the gain/loss reflects these selling charges and taxes, the average price shown doesn’t.

You can read the discussion thread here to learn more insights.

I tried using my computation excel tool and it also displays the same data with COL Financial.

You can download your own computation tool here so you can simulate your gain/losses for various selling prices. This way, you’d actually know if you’re really gaining or not!

And do you know there’s a way to minimize your percentage loss because of these charges? Click here to find it out.

Have fun investing (knowing where your money goes)!

PS: For beginners, download Bo Sanchez’ My Maid Invests in the Stock Market and Why You Should, Too![PDF]

Click here to download your FREE copy!

PS2: Just starting to invest?
Click here for step-by-step tutorials, tips & tricks and other lessons for beginners.


Did you like this article?

Don't miss out on my new posts. Subscribe to Smart Pinoy Investor by email and get my latest tips & updates! Click HERE! (it's FREE)


Avoid losing money and become a smarter investor!

Join my online training program for newbies(for OFWs too!) and learn how you can do stress-free investing!Click HERE!

Free Webinar - How to join investing in Philippine stock market for beginners!