Not Cashing In On Pay Day

Quote from daniel_m:

.015/share ROUND TURN dude.

and yes, you can get better, but .0075 is still considered a pretty good rate isn't it? (considering firms like Bright only hand it out to their highest volume traders)
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Feel free to continue whining, and I will feel free to continue making cachingos :D

There is a cost to this game: commissions... and if you do enough size, you can benefit from economies of scale by exploiting sliding scale commission schedules for example...
 
dude, i'm not whining. i'm just pointing out the flawed logic of your example.

if you think you can scalp with same sized winners and losers, and only hit 60% and think that's a good return, good luck to you.
i obviously disagree.

(oh, and another thing about your 'size' scalping, you're gonna have to be pretty good to keep your loser size down, because it's a lot easier gettting in with size then getting out...)

again, it's not whining candle (i'm not a whiner, am i?), just highlighting what i think are pertinent facts.
 
Quote from daniel_m:

dude, i'm not whining. i'm just pointing out the flawed logic of your example.

if you think you can scalp with same sized winners and losers, and only hit 60% and think that's a good return, good luck to you.
i obviously disagree.

(oh, and another thing about your 'size' scalping, you're gonna have to be pretty good to keep your loser size down, because it's a lot easier gettting in with size then getting out...)

again, it's not whining candle (i'm not a whiner, am i?), just highlighting what i think are pertinent facts.
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I am happy if you continue to think that my logic is flawed... my trading account obviously didn't catch on to those flaws :)
 
Quote from candletrader:




There is a cost to this game: commissions... and if you do enough size, you can benefit from economies of scale by exploiting sliding scale commission schedules for example...
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.0075, as i already pointed out to you, IS a benefit of sliding commissions.

and using .0075, i showed that your strategy presents a pretty weak return on capital. (especially with all the risk in holding 7000 shares).

now, if you're getting a better rate than this, all the best to you. so far, the best i've seen is point direx's .005. i haven't even heard of any prop firms beating that, although i wouldn't be surprised if there's people getting better.
 
Quote from candletrader:



I am happy if you continue to think that my logic is flawed... my trading account obviously didn't catch on to those flaws :)
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candle, all the best to you. if you are trading this way, and you are happy with your returns, honestly, congratulations. (LOL, didn't you used to push the swing trading? what happened there?)

but, if you think i have made math errors, or other incorrect assumptions, then i would really appreciate you pointing them out to me.
 
Quote from daniel_m:



.0075, as i already pointed out to you, IS a benefit of sliding commissions.

and using .0075, i showed that your strategy presents a pretty weak return on capital. (especially with all the risk in holding 7000 shares).

now, if you're getting a better rate than this, all the best to you. so far, the best i've seen is point direx's .005. i haven't even heard of any prop firms beating that, although i wouldn't be surprised if there's people getting better.
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0.01 a share is available through retail outlets to the newbie trading 100 shares...

And yet you continue think that 0.0075 is a good deal for someone trading large size and trading it frequently... ROFL :D

 
Quote from candletrader:



0.01 a share is available through retail outlets to the newbie trading 100 shares...

And yet you continue think that 0.0075 is a good deal for someone trading large size and trading it frequently... ROFL :D
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.01 is available at HOW MANY retail outlets dude? hmm??

i didn't say i thought .0075 was a good deal for high volume traders, but that is exactly the rate Echo and Bright traders were getting for doing 4 MILLION SHARES a month. at least, that was the rate they advertised.

but even with .005 the returns on your example STILL don't look that good considering the massive size you're trading. but that's just my take on it.

so what are you paying candle, .002 huh?? :rolleyes
 
When I made my statements it was under the assumption that most of my lossers were not as big as my winners which is usually the case for me. However I need to get a better way to pick my winners in order to get the percentage of winners higher because for me the "tape reading" strategy has not been working as well, probably partly because the tape has not been that reliable to read with the low institutional activity. Also I don't just cap trades at 10 cents, but let the trades go for as long as I can. However it seems most moves on larger cap stocks seem to be only 10 cents or so by the time you add in slippage, ect. For me it is just finding a strategy again where I can get trades like that at a high enough percentage rate to make it worth it.

Daniel M as far as rates go usually the advertised rates on website are no where near what you can get from firms. If trades are trading 4 million a month paying 7.5 per side then they are getting ripped off. I know 4 office near me where you can destroy that rate just by going to talk to the office manager. These firms are stuggling especially now with volume. Traders who were trading 100-150K shares a day 6 months ago are trading 20-50K a day.

Now if I could only figure out a realiable strategy again such as Candletrader has to consistently get winners then I would be fine.
 
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