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Pastimes : Working a day job and making a profit with low capital -- Ignore unavailable to you. Want to Upgrade?

To: Fred Davis who wrote (13)	4/9/1999 2:33:00 PM
From: CatLady	Read Replies (1) \| Respond to of 32

Think of transaction costs in percentages. If you pay $10 commission to buy or sell, then $20 in and out is 1% of a $2000 trade. I'd say that's OK. OTOH, $20/side on a $500 trade is 8%, so you have to be up 8% just to pay the broker. That's pretty tough. It gets worse when you look at the spreads on BB stocks. Giving up 10 to 15% on a BB spread puts you severely in the hole right from the start. A 1/4 point spread on a $10 NASDAQ stock is still 2.5%, but that's easier to make up than 15%. P.S. If you send a note to the webmistress, she can change the word in the thread header to capital. ( Or to SI Bob )