Gary, I'll explain:
First of all, I'm not what you might call a "real" day-trader, I'm not a SOES Bandit and I don't sit in front of a Bloomberg all day. Second, I like to make short-term trading plays with SYQT, but I'm never looking to scalp as little as 1/32 or 1/16. If so, you'd be correct in that the strategy would not be profitable when taking into account the spread and commissions.
I recently posted a few recent trades as I made them. Late Monday I bought at 1-9/16 and set my stop-loss at 1-5/16 and my sell-limit at 1-7/8. I was lucky and just missed the stop by 1/32 on Tuesday, and then enjoyed continued luck by hitting my sell during the brief spike to 2 on Wednesday. That's roughly a $3K (or 20%) short-term gain for each 10K block traded (before commissions). As far as commissions go, if you trade often, you can negotiate reasonable costs, just call your broker.
Hope the clears up the misunderstanding.
Regards - Dale |
