cash balance in a trading account

Maybe lets see from my angle:
150 trades 79.5 winners lets say 80. 70.5 losers lets say 70. Was it $10 commission per trade? Lets say yes. That's $150 per year in fees. 50k / 150 trades = $333.33 at risk per trade. He makes or losses 5% per trade or $16.66. $16.66 * 80 wins = $1,333.33. $16.66 * 70 losers = $1,166.20. $1,333.33 - $1,166.20 = $167.13. $167.13 - $150.00= $17.13 profit per year, If my numbers are correct it pretty much a break even.
 
Robert Modd said:
Maybe lets see from my angle:
150 trades 79.5 winners lets say 80. 70.5 losers lets say 70. Was it $10 commission per trade? Lets say yes. That's $150 per year in fees. 50k / 150 trades = $333.33 at risk per trade. He makes or losses 5% per trade or $16.66. $16.66 * 80 wins = $1,333.33. $16.66 * 70 losers = $1,166.20. $1,333.33 - $1,166.20 = $167.13. $167.13 - $150.00= $17.13 profit per year, If my numbers are correct it pretty much a break even.
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That was my thought, so with the size of his account and no margin account, unless he is very good at predicting directional, covered calls/puts will very likely net him breakeven. Otherwise he needs to trade less, or find other instruments perhaps longer timeframe and/or trade spreads, long options....

By the way I look at the web site, some good info there.

Regards,
 
Yes the market is very efficient. Without an edge, statistically its pretty much break even. Selling covered calls ect. can be profitable with an edge. For example playing volatility to revert to the mean.

Thanks for the good words about the site.
 
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