# I am confused with this selling of stocks?(read below)?

If I buy a stock for 1 dollar and invest 500 dollars. The stock goes to 2 dollars. I should have 1000 dollars worth of stock. But let’s say I sell some of the position. I sell the  stock at 2 dollars, worth 800 dollars of stock. I should have 200 dollars worth of stocks left. So does that mean it’s 200 dollars worth of stock bought at the 1 dollar level. You see what I mean. Am confused????

Update:

So is that 200 dollars worth of stock at 1 dollar. Or is that 200 dollars worth of stock at 2 dollars. What I mean is if the stock drops below 2 dollars, is my 200 dollars worth in the negative or am I ok until it drops below a dollar, you see what I mean here???

Relevance
• 1 month ago

When invest \$500 at \$1/share, you get 500 shares.

When it goes up to \$2/share, you still have 500 shares, which are, yes, worth \$1000.

You sell \$800 of stock, at \$2/share, that's 400 shares.  So know you have 100 shares left, worth \$200.

You also have \$800, but you have to pay tax.  You sold 400 shares and you made a profit of \$1 on each of those shares, so your profit was \$400 (you spent \$100 buying shares you still own, and \$400 buying shares you sold for \$800, so the profit on the shares you sold was \$400).  So now you pay capital gains tax on the \$800.  That leaves you with 400 shares and some money, but less than \$800.

• 1 month ago

You are confused over nothing.

• 1 month ago

You buy 500 shares of stock at \$1 a piece.  Your cost basis is \$1.

You sell 400 shares of stock at \$2 a piece = \$800.  \$400 is your original cost and \$400 is profit.

You aren't in the negative, because you still own 100 shares of stock that are now worth \$200 but you bought at \$100.

For you to be in the negative, the shares have to go much lower than \$1 because you have already gotten \$1 profit from your dollar cost averaging.