3 trades in one week - Wash Rule?

I understand the basics of the rule but I'm confused about this scenario:





Within 30 days


3 separate purchases of the same stock.


The first 2 result in losses.





Purchase #1 loss = cannot take loss, move cost basis to #2.


But since #2 is also a loss does that mean it moves to purchase #3?





I understand that the holding time of the 1st purchase is added to the 2nd, but in this scenario ALL 3 purchases are still within 30 days.3 trades in one week - Wash Rule?
%26lt;%26lt;%26lt;But since #2 is also a loss does that mean it moves to purchase #3?%26gt;%26gt;%26gt;





Yes.





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For a really good, simple English explanation of the wash sale rule see the section on it near the middle of the page at





http://www.fairmark.com/capgain/index.ht鈥?/a>