Hi. Personally I don’t find average price very useful because I don’t actually think it is actually the average price.
To explain, if I buy and sell a share 5 times the “average price” currently will simply tell me the average of the buys but does not reflect any of the sells and whether they were for profit or loss.
What would be far more useful is the total cost of purchases - total receipt from sales. If I buy with a previous zero holding it can be reset to zero (and then be the cost of that purchase) so that historical trades don’t carry over after I have completely sold. However, either:
- total cost of purchases - total receipt from sales
- (total cost of purchases - total receipt from sales)/number of shares held now
will give me clear information about how my investment in that stock is actually doing which average cost doesn’t always do.