I don't want to post to much about how many shares I hold in any one thing or say I know how to invest better than some people who are far more experienced (finance and investment bankers), this is an example of how based on charts I would do what you asked.
Lets say you have an interest in a stock that is just being listed called stock X
IPO lists at .20
Pay $5000 for 25,000 shares
Option A
Stock heads upwards - either trade on daily pips 20% of shares with 2-3% gains (most people would risk a lot more $ or shares to = better profits but i'll use a low number just to give you an idea)
- daily price starts at .30 heads to .33 = sell, $1650....stock heads down to .28 buy 5000 = $1400
= $1650-$1400 = $250 - $16 ($8 per trade for me) - tax (lets say 50% CGT for this example) = $109 profit
Option B
Stock heads upwards - trade on highs and lows
Set a cap such as .50c sell 50% of shares - 12500 * .50 = $6250 - $2500 = $4000 profit
CGT+Fee = $1984 profit + $2500 open fund
Current shares 12500 @.20
Stock swaps to downwards trend or CR - I decide to either A take profits and only re-invest initial $2500 or invest $2500+ my $1984 profits (lets say you re-invest it) $4476 ($8 trade fee)
$4476 / .35c share price = 12789 shares @.35
Total shares =
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Use the formula
Share price * total no. of shares, add together, divide total number of shares owned
= 2500+4476 (6976
Your new average is 0.276c (rinse repeat at buy and sell intervals)
Hope this is what you meant cause it took a while to write