Hope you don't mind me asking a dumb question.
I like your idea of having bundles of shares in the same company some for holding and some for trading. Just wondering though how do you sell the parcels you brought for trading 1st? My understanding from talking to the guys at Etrade at least is that when you sell a bundle of shares it s is the cheapest ones which are sold first you cant tell them you want to sell the trading parcel 1st. For example.
Say you brought 1,000 shares at $1 and then another bundle of 1,000 shares at $2 for longer term holds. Thus your long term holding is 2,000 shares with an average cost of $1.50 and total cost $3,000. Then when the price hits $2.50 you buy another 1,000 shares and decide to use this as a trading parcel. When price hits $3 you sell the trading parcel. My understanding is that Etrade would then sell the parcel purchased with a cost of $1 so profit would be $2,000 however in my plan I wanted to sell the trading parcel with the cost of $2.50 and keep the cheaper parcels in my long term holdings (so my average cost remains at $1.50). I know by the end of the trade it all works out the same but just wondering how you manage your holdings between those held and those traded before you have sold off all the shares in that company? Do you just keep track of it separately in a spreadsheet or something or is there a way to just sell the specific bundle held for trading 1st? Hope this makes sense as I haven't yet traded multiple parcels of the same company's share yet so just wondering how you manage this.
