It is true what you say about moving average cost, but if you can buy 500 share one day at 4.50 and sell a week later for 5.00, then buy back at 4.65 and sell again at 5.00, you are still making money on these trades and still hold your core for the longer term gain.

Just to clarify

If you have 10,000 at 70 cents (like many longs here) and add your 500 at 4.50 your average cost moves to $0.88. Now if you sell that 500 shares at 5.00 you now have to report a gain of 500(5.00-0.88)=$2060. That will be taxable at 50% or $1030 taxable capital gain and at 40% tax rate that will cost you $412 in hard cash. Please show me where you see the gain on the hard cash gain you think you got (500 (5.00-4.50) or $250. I don't thnk I need to go through the 2nd transaction to show my point.

I'll hold and buy more but will wait like Crazydik for $20 before I give the tax man one cent.

BB