HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Day trading eats up lots of commissions
Look at it this way: say a stock goes from H$10 to H$20 over three months. That's a 100% return, which is pretty good. Say you buy at H$10 and sell at H$20. You're paying 10 cents per share (1%) when you buy, and 20 cents when you sell. So you make H$10, minus 30 cents commission, for a total profit of H$9.70. The commission is only 3% of your profit. Now suppose you buy at H$10, and sell when it hits H$12 a week later. You've got H$2 profit, minus 22 cents, for a profit of $1.78. The commission is 11% of your profit, or almost 4 times what it would be if you held the stock for three months, as opposed to a week. You realize your profit faster, but you pay a much higher percentage of that profit in commission. The only real reason to sell any security is if you think there is another security that is a better investment opportunity. If you own a movie that isn't going to be released for a year, there may not be much movement. But an put or call make money money in just a few days. So I could limit your day trading to options. Once I buy a stock, I rarely change my position until delist, unless my original chocie was wrong.
P&L Question Mar 02, 10:53
well theres a 1% commission on every trade. are your gains making that much Mar 02, 11:59
Your name is creeping me out haha [nm] Mar 02, 22:45
Day trading eats up lots of commissions Mar 04, 09:32
Re: day trading Mar 06, 18:11