Invest mode quistion

Hello, on invest platform, when ever you buy a stock and buy more shares of that stock it takes the averege price and puts it into 1 investment. If i buy more shares of a stock lets say the 1st of every month (every 30 days or so) and the stock rises, wont it just put my investment price higher and higher?
Or how does it work

Your average purchase price will go up. Which affects your return %.

The most ideal moment is to buy as low as possible, but you don’t know what the bottom of a price is. You see a lot of investor buy extra shares when the share price is below their average price. So you are able to lower your average.

2 Likes

But lets say i wanna invest every month, and the stock goes up x % each month. Wont that just be counter effective to my investment? I mean ill be putting more money in my investments each month but the averege price will just keep going up (if the stock is obv growing) But i get the point of buying lower and then getting some shares at a disscount. But if i wanna hold my positions lets say 5 years, and the stock keeps going up, there’s gonna be a time that it wont be worth investing more into the stocks i have bought long before because it takes the price up

If the stock does carry on going up with time, and you keep investing along the way, your returns will be magnified due to adding along the way.

This will in turn raise your average cost price, but it will also raise the amount of money you gain for each percent the stock rises. Also, your dividends will be higher due to adding more money.

Hope that helps answer your question.

1 Like

Your average will go up yes, but it will be relative to your previous purchase

If I buy 100 shares at $1, and the price is then $100, when I buy my next 100, my average is $50.5, still above the SP.

1 Like

I see, thanks for the help. Appreciate you all using your time. Have a wonderful day