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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: Peter Neidhardt who wrote (53)	11/21/1998 2:38:00 PM
From: keith massey	Read Replies (1) \| Respond to of 62348

Dude, I think you need to check your math on that one! Dude.. I mean Peter With your $10,000 you could buy 750 shares on margin and the trade would only cost you $30 in commission. The stock closed today at $50.40. On this trade you would have made 750 $5.40= $4050* With a margin account any stock over $5 on the TSE with options can be margined at 70%. This means they will lend you 70% of the money to buy the stock. With $10,000 you have 10000/(1-.7) = $33,333 in buying power. If the stock is selling at $45 you can buy 33,333/$45 = 740 shares (I guess I rounded up). When you sell you get the difference between the price you bought at minus: the price you sell, the commission of the buy and sell and the interest on the margin. In this case the commission would be $30 for the buy and $30 for the sell give or take a couple of dollars depending on who you trade with. If you buy at $45 and sell at $50.40 you have made $5.40 a share in profit. You are charged 8% on margin .... $23,000 * (8/100)/365 days = $5 (740 shares * $5.40) - $60 in commission - $5 in interest = $3931 profit. If you are trading with $2000 then divide by 5 on all numbers but the commission. My math was a little off but I was doing it in my head last time. Best Regards KEITH