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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: Bo Didley who wrote (1439)	10/5/1998 10:19:00 PM
From: LiveWire	Respond to of 7382

Here is a list of many day-trading firms if anyone would like to research for themselves. frontiernet.net

To: Bo Didley who wrote (1439)	10/7/1998 3:33:00 PM
From: Captn	Read Replies (1) \| Respond to of 7382

This looks like fun. God bless free speech. To come to a better understanding of the effect of commission on net trading income I created a spreadsheet financial model of typical trading activity. The variables it accomodates are commission, any monthly fee or recurring expenses, the average number of shares, the average stock price per share, the number of trades per day, etc. I used a month of typical daytrading results, stops, rates of success, etc. That was 22 trading days. By changing the incorporated inputs and recording the results in various tables, one can get a very good idea of the effect of commission as well as all the other variables net trading income. I suggest everyone do something similar if you haven't already. It will greatly enhance enhance your personal own understanding. There are a lot of variables. Choosing a broker with the lowest commissions is not necessarily the best way to increase net income. Here is a list of ways: Better screening of stocks to play, making more careful entrys and exits, saving the spread, getting better and faster executions, increasing one's average number of shares traded, optimizing the market hours one's attempts to trade, Choosing a hardware, software, phone line, ISP, or direct system and back ups system with enough reliability and redundancy to effectively minimize crashes, having the broker ready to execute by phone when something does go wrong or for any reason one can not get his order in online, etc, etc, all have an impact on net income. For instance someone who trades part time, small shares, poor picks, poor trades, small net profit/trade, high price per share, will be alot more sensitive to commission than someone the opposite. I know now after studying all sorts of hypotheticals via such a simple little financial model that I am a lot less concerned about commission rate and a lot more concerned about all the other variables than I was before. I would also add that it is through threads like these in all the various forums and chat rooms that I have learned as much as I have in a very short time. So I'll take this opportunity even though I am relatively new to thank everyone for sharing. Thank you and enjoy trading.