buy markers

[sinclair68]

Hello,

I have the strange issue that the buy markers do not show up at the right place in a graph on the y axis (e.g. bought at a price of 4515 but shown in the graph at about 4900). The issue is just for one specific investment, which is a fund where I import the price data over a .csv and enter the purchases manually.

Any idea what went wrong?

Thank you for your support and best regards, Ralph

[Mark]

Hi Ralph,

Are you on a "Price + Dist." graph type? On those graphs, the plotted marker is plotted with any prior distributions added, so you can see relative to the plotted line, where you purchased.

[sinclair68]

Hi Mark,

thank you for your quick reply.

No, it happens also if I choose pure price graph or just technical analysis graph. It is really strange as it affects only this particular investment, which by the way is in a separate portfolio.

[Mark]

Hi sinclair68,

The buy price includes any commissions. Do you have a commission fee on this purchase? If that doesn't explain it, you can post a couple screen shots, one of your transaction in the Buy/Sell dialog and also the price graph showing the buy marker.

[sinclair68]

Hi Mark,

aahhh... I think I got you now. It's the fees! The confusing issue was/is that I only buy each time fractals of a share of the fund like, 0.20 (as it is a fund bying plan). So the software "adds" then up to one, I guess, multiplying the fee times 5 in this example, which gives the larger price difference. Am I right?
If so, I could live with it. Although if there is a possibility to exclude the fee in this case, please let me know as it looks a bit strange in this particular case.

Thanks and best regards and good night from Switzerland,
Ralph

[Mark]

Hi Ralph,

I didn't quite follow your situation, but let me explain how the plotted price is calculated when there are fees involved. Let's say you bought 10 shares at a price of $5/share, plus you paid $35 in commission. You paid $85 in total, which if you divide that by 10 shares comes out to paying $8.50/share, so the buy marker will be plotted at $8.50 in this example.

There is no option to turn this off, it always plots at the purchase price per share, including any commission fees.

The fees are not added between separate purchases. Each purchase is plotted independently, including the fees from just that purchase transaction.

[El Wealtho]

Hi Ralph,

I didn't quite follow your situation, but let me explain how the plotted price is calculated when there are fees involved. Let's say you bought 10 shares at a price of $5/share, plus you paid $35 in commission. You paid $85 in total, which if you divide that by 10 shares comes out to paying $8.50/share, so the buy marker will be plotted at $8.50 in this example.

There is no option to turn this off, it always plots at the purchase price per share, including any commission fees.

Is this still the case? It also applies to Sell markers? Why does FM do this? How does this affect the ROI calculation?

It seems it would be better to plot the actual purchase and selling price. Why. Because the way FM does it confuses the issue. eg. Graph plots actual most recent (typically closing) prices, FM plots marker at adjusted transaction price ... the two are not directly comparable and the marker placement can be misleading.

Is there a reason for not plotting the actual transaction price and accounting for the commission elsewhere?

Thx

PS. When establishing a new investment there is a box in which one may enter a "Commission Fee".

How does what is entered here affect subsequent plotting and yield calculations, if at all?

How is that dialog box revisited (to change the Commission Fee value)?

PPS Perhaps if i explain one of the ways I use FM yield calculations it will clarify what I am after ...

For each investment there may be a target Annualized ROI at which to sell. FM seems helpful in tracking this.

Just need to know whether Commission Fees (Purchase? Purchase and Selling?) are included in FM ROI Yields. (Idea: could TWR be used in some cases, assuming CFs are not included in that Yield formula.)

Many thx.

[Mark]

Hi El Wealtho,

Yes, FM still works this same way. Commission fees are included in ROI yield calculations. This is money you paid, so they factor into your ROI. If you pay a large commission fee, that will lower your ROI. The idea behind including a commission fee in the plotted point, is that you are seeing what you paid, including commission fee. This is money you had to pay for the shares, so it is your real actual purchase price per share.