Quote from Vaquero:
What are the typical number of shares that both experienced and inexperienced trade per day in this strategy...secondly what is the highest and lowest commission rate paid by traders who are in this strategy....
What would be a typical annual commission total for this strategy as well as a typical annual profit expectation...?....
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This was a typical week for me, only traded 4 days, made money 3 out of 4 days. Traded 98,000 shares with this strategy this week, so about 25000 shares a day average. My commission is .005 cent a share. My daily average for the year is around $250 a day net gain. I've been trading the strategy for over a year now. The past 3 months I have averaged 62.5% winners versus losers.
I recommend starting out small, just 100 or 200 shares per stock until you get used to it, see which stocks work for you, what size envelopes to use and most importantly to refine your exits. Don't worry about making money the first 6 months. Consider any gains a plus and any losses as your tuition. If you want to speed up the learning curve think about going to one of Don's boot camps. I did not do this so I don't have any experience on how good it really is but he says the bootcampers have good results.
My share quantities now vary in size between 400 shares on stocks that I am experimenting with, 800 shares on stocks that are consistant winners but don't have a lot of volume and 1500 shares on my large caps. I will probably be bumping them up to 2000 shares soon. Right now I have a lot of small ones going on as I am experimenting with a number of new stocks. It is important to learn which specialists are consistant winners, which ones are consistant losers, which ones are quick to reverse directions, which ones have the right liquidity for the amount of shares you are trading. Keep a log from day one and track your winners/losers and $ amounts and how you get filled with differnet futures direction.
If you are not trading with a Pro firm with a penny or less commission don't even think about trying this.
