Thread by @StonkVision

**DD FOR DUMMIES** Morning, STONKERS! If you’re a bag HODLER, and have no idea why you’re in the red, this tweet is for you!! I want to talk about Cost Basis Per Share or “Average Price”. 1/11

Your Cost Basis Per Share or Average Price Per Share (depending on your brokerage) is just that. The average price that you bought your shares at. If the price goes up, from there, then obviously you’re gaining money in your investment, and if it goes down, then the VALUE of 2/11

your investment is going down. You still own your shares, so the VALUE of your shares goes up, and it goes down on a daily basis. 3/11

A good way to ensure that you get ROI or “Return on Investment” sooner is to do something called “Averaging Down”. So say I buy 2 shares of $STNK 4/11

stock at $4.00 a share, then because I bought those shares at $4.00, my CBPS (Cost Basis Per Share) would be $4.00. 5/11

So let’s say that the price dipped to $1.00 per share. I’m obviously LOSING money. So if I’m SURE the price of the stock is going to go back up, 6/11

then I can buy what’s called “the dip”. This means buying an equal or greater amount of shares in that same stock at that lower price, so that I begin to get ROI at a LOWER price than my original CBPS. SOOOOOO…. 7/11

If my Original investment is 2 shares at $4.00 and I buy 2 more shares at $1.00. My total investment is $10.00 but my Cost Basis Per Share is going to go down to $2.50. Which means that at $2.51, I’ll begin to see positive return on my investment at $2.50 vs. $4.00 like before.

The math is simple. 2x$4.00=$8.00 (original investment)
2x$1.00=$2.00 (adding to your position to average down)
So then $8.00+$2.00=$10.00

Divide that number by shares you own…

$10.00/4=$2.50. 9/11

So your new Cost Basis Per Share would be $2.50 which means that when the stock reaches $2.51,

you’ll begin to see Returns On Investment at that $2.51 and on, instead of the original $4.00.
10/11

Hope y’all have a PHENOMENAL day!

*This is not financial advice. I am NOT a financial advisor* #APESNOTLEAVING #ApeStrongTogether #Apes #AMC $AMC 11/11