fantastic market reaction, page-105

Vendor said
"2 scenarios.

1. Buy $10000 of shares at $4.00 = 2,500 shares
Buy $10000 of shares at $2.50 = 4,000 shares
Buy $10000 of shares at $1.00 = 10,000 shares
Buy $10000 of shares at 0.50 = 20,000 shares

Shares at time of last purchase = 36,500 @ 50c = $18250 for an outlay of $40,000"

Extremely simplistic, however modify the senario as below.

What if replace the above senario with:
Buy $10000 @ $4= 2500shares, the market drops as above
Sell 2500 shares @ $2.50 and buy $20000 @ $2.50 = 8000 shares same again
Sell 8000 shares @ $1
Buy $30000 of shares @ $1 = 30000 shares, same again
Sell 30000 shares @ 50c
Buy $40000 shares @ 50c = 80000 shares
Deduct the tax loss from your income and take the profit on the 80000 shares on the way up for an outlay $40000 with bonus of tax consideration at 30c? 48c?