daytrading profits --- how many cents per trade is realistic
- Thread starter kotika
- Start date
6 pages, mostly on basic math and detail reading? Can we set up a poll with SAT questions? I'm betting the under.
As Dustin points out, an average is worthless unless you restrict the question to a particular type of strategy. One of my strategies has averaged about 50cps long-term, but I've recently tweaked it in a way that will result in lower cps, but higher volume (and higher total profit).
Another of my strategies only results in about 1-2 cps, but much more volume.
Another was worth about 90cps, but is now dead completely.
"It's all situational"
As Dustin points out, an average is worthless unless you restrict the question to a particular type of strategy. One of my strategies has averaged about 50cps long-term, but I've recently tweaked it in a way that will result in lower cps, but higher volume (and higher total profit).
Another of my strategies only results in about 1-2 cps, but much more volume.
Another was worth about 90cps, but is now dead completely.
"It's all situational"
thanks all for answering, and sorry for the confusion.
i thought that the question of how many cents per share profit you have on a trade was as simple as the question of how much commission per share you paid!!!
i sincerely hope these guys who dont know how much they make, at least do actually know how much they pay in commissions.
there can be different equivalent ways to make the calculation, but the large volume trader will indeed calculate it as total profit divided by the number of shares moved.
there was a valid point raised whether we count getting in and out as separate trades or not. Well there is a difference between houses and shares and it is that on a house you pay the commission once (when you sell), but on shares you pay twice.
so, i think its ok to count volume both on the way in and out. That way a 10cps gain on a buy and sell would result in a 5cps per trade, but thats fine by me.
i thought that the question of how many cents per share profit you have on a trade was as simple as the question of how much commission per share you paid!!!
i sincerely hope these guys who dont know how much they make, at least do actually know how much they pay in commissions.
there can be different equivalent ways to make the calculation, but the large volume trader will indeed calculate it as total profit divided by the number of shares moved.
there was a valid point raised whether we count getting in and out as separate trades or not. Well there is a difference between houses and shares and it is that on a house you pay the commission once (when you sell), but on shares you pay twice.
so, i think its ok to count volume both on the way in and out. That way a 10cps gain on a buy and sell would result in a 5cps per trade, but thats fine by me.
Dustin has it about right... about 2.0 cents/share is the ceiling today.
Sorry... but it's not 1995 anymore.
Simple analysis.
IB "unbundled" rate is about 0.35 cents = 0.70 cents roundtrip.
Personally, my profit margin is roughly 70% on about 40,000 trades/year...
But one can be successful with 40-50% profit margins and up.
So I gross 2.35 cents minus 0.70 cents = 1.65 cents net profit/share roundtrip.
Right in the middle of 1.0 to 2.0 cents.
People claiming 3.0-5.0 cents profit are also claiming 90% profit margins.
They either don't actually know what their profit margin is...
Or they are trying to sell something to Rockfish.
zdreg
Registered: Oct 2003
Posts: 1539
06-19-06 09:49 AM
what is the profit oer car, gentlemen?
I buy a house for 1M and sell it for 2M?
what is the profit per house?
You don't understand the difference? Please tell me you are being sarcastic?
Registered: Oct 2003
Posts: 1539
06-19-06 09:49 AM
what is the profit oer car, gentlemen?
I buy a house for 1M and sell it for 2M?
what is the profit per house?
You don't understand the difference? Please tell me you are being sarcastic?
I continue to be amazed at some of the people here, comparing apples to oranges, but insisting it can be done!