Are there any daytraders in countrys with an FTT 0.5% or over?

H

Hybr1d88

Is it even possible to daytrade with the kind of FTT the robin hood tax nutjobs are proposing?

Is this 0.5% round trip or 1%(lmfao) roundtrip? If it is 1% it will literally(not fear mongering) tank the entire USA economy(see Sweden) and will undoubtedly be reversed the next month.

Now if it's 0.5% roundtrip it might stay around for a little while despite decreasing volumes. Although it seems much more likely that it will be in the range of 0.1-0.2(see France and Italy) or less. Also France doesn't tax intraday traders it's on net gained position on EOD so it's swing or long term traders that bite the bullet there.

So let's say the USA passes an FTT(highly unlikely as the republicans will have pretty solid control of the house until around 2024), but let's say they do somehow manage to pass it, and let's say institutions and banks aren't exempt so they will fight it. I say this because if they were exempt than the tax wouldn't make very much money, as there aren't many retail traders whom are profitable to begin with.(Let's say 85%-90% are profitable). I would say about half of all day traders literally stop trading the day of activation and another 1/4 go after that, leaving only 1/4 of there volume(the highly successful 500K-1M+ a year day traders.)

How much money could one still hope to make daytrading with an ftt, one that's in the realm of 0.02%-0.2%?

Would it be possible to be a profitable day trader with a 0.5% FTT?

Not that I could ever see the US implementing one so high it would be reduced the second the market and volume tanked(30%+, see Italy), the politicians would realize how retarded they are. For another example Italy ALREADY reduced there newly implemented FTT and France won't do it for intraday. My bet is Italy reduces it again soon or changes it with the same intraday exemption that France has.
Apparently there's plenty of successful day traders in Hongkong and they have an FTT of 0.1 on both the buyer and seller(round trip of 0.2%).

Thanks guys
 
Hybr1d88 said:
Is it even possible to daytrade with the kind of FTT the robin hood tax nutjobs are proposing?

Is this 0.5% round trip or 1%(lmfao) roundtrip? If it is 1% it will literally(not fear mongering) tank the entire USA economy(see Sweden) and will undoubtedly be reversed the next month.

Now if it's 0.5% roundtrip it might stay around for a little while despite decreasing volumes. Although it seems much more likely that it will be in the range of 0.1-0.2(see France and Italy) or less. Also France doesn't tax intraday traders it's on net gained position on EOD so it's swing or long term traders that bite the bullet there.

So let's say the USA passes an FTT(highly unlikely as the republicans will have pretty solid control of the house until around 2024), but let's say they do somehow manage to pass it, and let's say institutions and banks aren't exempt so they will fight it. I say this because if they were exempt than the tax wouldn't make very much money, as there aren't many retail traders whom are profitable to begin with.(Let's say 85%-90% are profitable). I would say about half of all day traders literally stop trading the day of activation and another 1/4 go after that, leaving only 1/4 of there volume(the highly successful 500K-1M+ a year day traders.)

How much money could one still hope to make daytrading with an ftt, one that's in the realm of 0.02%-0.2%?

Would it be possible to be a profitable day trader with a 0.5% FTT?

Not that I could ever see the US implementing one so high it would be reduced the second the market and volume tanked(30%+, see Italy), the politicians would realize how retarded they are. For another example Italy ALREADY reduced there newly implemented FTT and France won't do it for intraday. My bet is Italy reduces it again soon or changes it with the same intraday exemption that France has.
Apparently there's plenty of successful day traders in Hongkong and they have an FTT of 0.1 on both the buyer and seller(round trip of 0.2%).

Thanks guys
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I meant to say 85-90% of traders are net losers by the end of the year.
 
politicians are retarded by nature. fully retarded. so yes, anything is possible. but highly unlikely in my opinion. really unlikely, since the US is the world's most important center of finance.
no matter how indebt the US government will be, they'll find other ways than to impose a FTT.

but to give a comment to your questions. first, I hardly believe that there are a lot of profitable retail day traders out there.
I mean those who can make a decent living (let's say more than 5K a month for the last few years) from daytrading alone. I don't want to seem pessimistic, but I wouldn't be surprised if I could count them with my ten fingers and eleven toes ;)

0.5% or 1% FTT a round turn would make daytrading impossible. nobody would trade any more. also 0.2% or 0.1% would have a big impact on the proftiabilty. I think most traders would switch to swing trading. What about HFT's front-running or market making? Impossible.
Volume and liquidity would fall off a cliff. Intraday charts would remind me of the stock exchange in Zambia.

But should there ever be a FTT, I'm pretty sure there will be ways to avoid it, using derivatives for example. Like the stamp duty in UK.

Bottom line, I really can't think it will ever happen. Should it happen however, effects would be dramatic and most of us could look for a new job.
 
That would take such a big bite out of the GDP and the tax money we already collect, that I believe this tax will have the reverse effect. I won't make 300 billion in 10 years. It will lose trillions.

I agree about the swing trading, one of the reasons why I look to learn as much as I can about swing trading as well is so in case of an FTT I can still make plenty of money doing that, given that I do it well.

I disagree about most traders looking for new jobs, there would be less work available as the economy would be in shock/chaos(see Italy) and most traders that do this for a living don't have very much in the way of experience with other stuff. Probably wouldn't look good on a resume.
 
On second thought, if you had a high enough profit/loss and win rate, you could totally still day trade even with an ftt. Also the volatility per trade would increase, meaning you could potential make more money per single trade, the market would adjust and people would be looking to make more per trade, the spreads would be larger.
 
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If the markets will have problems they will move to another place where they don't have this problem. All stock exchanges can work perfectly when they would be based in Kuwait, Qatar, Bahrain or the United Arab Emirates. These places are becoming more and more important financial centers and they have the financial resources to organize it. Dubai has become in a very short times one of the busiest airports in the world and one of the biggest financial centers in the world. On top of that taxes on trading are ZERO.
 
Hybr1d88 said:
On second thought, if you had a high enough profit/loss and win rate, you could totally still day trade even with an ftt. Also the volatility per trade would increase, meaning you could potential make more money per single trade, the market would adjust and people would be looking to make more per trade, the spreads would be larger.
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your post is complete drivel. on "second thought" or thought shot from the hip is a wet dream proving you understand nothing about returns in the market. this is one more crap thread by posters whose knowledge of statistics is somewhere between nil and zero. an ftt of .002 will maker a day trader lose all his capital and out of business. sit down with pencil and paper(that's right) and calculate.
obviously you did not read other threads on this subject before posting detritus.
 
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i am nobody said:
If the markets will have problems they will move to another place where they don't have this problem. All stock exchanges can work perfectly when they would be based in Kuwait, Qatar, Bahrain or the United Arab Emirates. These places are becoming more and more important financial centers and they have the financial resources to organize it. Dubai has become in a very short times one of the busiest airports in the world and one of the biggest financial centers in the world. On top of that taxes on trading are ZERO.
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Yes, this is correct. However, you need to account for regulations-- US citizens may be prohibited from trading outside the US or taxed on trades despite being made on off shore exchanges.

With this said, FTT's are pretty much a mute point in the USA as the research shows FTTs damage market quality so there is little to worry about for US based traders . Peace. Surf
 
zdreg said:
your post is complete drivel. on "second thought" or thought shot from the hip is a wet dream proving you understand nothing about returns in the market. this is one more crap thread by posters whose knowledge of statistics is somewhere between nil and zero. an ftt of .002 will maker a day trader lose all his capital and out of business. sit down with pencil and paper(that's right) and calculate.
obviously you did not read other threads on this subject before posting detritus.
More...

My bad bro, what's your opinion on the possibility of an FTT ever coming to the USA?

Also could you elaborate on how a daytrader with a 2.5:1 Profit loss ratio and positive win rate would lose money with a 0.02 ftt?
 
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