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Technology Stocks : Intel Corporation (INTC)
INTC 40.56+10.2%Nov 28 9:30 AM EST
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To: John O'Neill who wrote (65811)10/6/1998 2:15:00 AM
From: Aaron Cooperband  Read Replies (1) of 186894
 
John -

Re: "My day trade failed..I covered at 79 3/16, a loss of 3/16 +$40
commision."

I once sat down with a professional day trader and calculated how much he had to make to break even. It came out that he needed to achieve a 25% annual return on investment just to cover his commission and the bid/offer, assuming he traded every day.

There are only 2 ways out of this problem for the day trader:

1) Lower your costs. Either get a cheaper broker, or figure out some way to pay the bid and receive the offer (ie. become a market maker).

2) Trade more intelligently. If you can halve the number of trading days, your costs drop by 1/2 as well. The challenge here is to cut those days that are unprofitable or flat while leaving those that are profitable - easier said than done, of course!

Aaron
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