The Cost of Trading

Arthur Heinmaa Toron Managing partner discusses the hidden fees of day trading and the benefits of long term investing vs. short term buy and sells.

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News & Politics

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[samthewildone]

Thanks

[Ibanezx123]

Moral of the story, You need to do much research first on which broker to pick, you have to factor in commissions, does the platform cost money?, does Level 2 cost money and do you need level 2?, is there an inactivity fee?, be aware of minimum account balance rules. So far i've found InteractiveBrokers to be the best, but you might want to use a different charting software. Ninja trader is a free platform, that many people like and you can integrate it with IB quotes

[aaron84751]

Trading penny stocks with a funded etrade Etrade account of $3,750, I purcased 3 stocks at a time each day, no less than 10 trades per day. Etrades fees of $9.99 per transaction =$19.98 per buy/sell of each stock. I earn as little as $40. per trade at the Market value of a asking sell price. With all positions sold I profit $37.50 minus $19.98 fee= $17.50 net profit. 10 trades a day=$175.20 times 21 days of trading of April 2011=$3,679 monthly earnings. Reinvested $3750 + $3679=$7429!

[blakesdad38]

ummmmm...no day trader would ever pay $10 or $20 per round trip. Also, you need a MINIMUM of $25,000 to day trade. Most day traders have 100K plus. Lastly, a pro day trader does not trade $10 stocks. We're going for at LEAST $70 or higher so that the ATR is wide. We also look for stocks that trade a million plus shares = small bid/ask spread. Pros know this...sucker amatuers don't. Buy and hold is so 2007.

[peruface]

You can tell his not a trader

[sabdow]

@sinister60804 -- well done!!!

[TheThunderduck]

He's a shill for a mutual fund. What he is not telling you is Mutual fund managers day trade with your account and sock you with the commissions. My mom switched Mutual funds when she found out her last one was doing that.

[muaytb1]

trading is a zero sum game so trading the Nikkei would be even worse according to this logic (on the average)

[JCB7890]

It always amuses me that "buy and hold" is presented as some kind of a strategy. We in the US and UK have only recently been exposed to stock market falls, but take a look at Japan. The Nikkei index was 38,000 in 1989, and 20 years later it's around 10,000. Try telling the Japanese to "buy and hold". And I bet you think it won't happen to us? Are you sure???

[sinister60804]

But why panic to pay 20% if you are meking a profit, it takes money to make money, I love trading, I started with 3500, and now my account is valued at 16500, in about 6 months, i would buy low sale high and buy low again allways trading on news about the company,