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Everyone knows that the brokers/markets take money from us when we trade. Otherwise, why would anyone pay for order flow? On the other hand, some people believe that they can trade well enough (as opposed to picking stocks well) to make money. We call them day traders.
How do you handle hidden trading costs? Do you avoid Nasdaq stocks? Do you place limit orders inside the bid-ask spread? Do you stay away from penny stocks?
How do you measure hidden trading costs?
We will talk about any kind of hidden trading costs here, but to start, we will discuss the Motley Fool RuleBreaker portfolio, which comes preloaded with Portfolio Explorer. This software is in beta and can be downloaded for free from portfolioexplorer.com
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