What is a good profit/commission+fees ratio?

Evermore2017

Evermore2017

Hi, for active traders(stocks) about 150 trades/month

What is a good profit/commission+fees ratio?

For example:

-gross profit: $5000
-commissions + fees: $750(15%)
-net profit: $4250
 
You compare trading costs to your capital. Trading costs are typically ignored by the many misinformed traders. My trading costs are on average 1.5% of my capital.

I would hate to have to make 20-100%+ just to break even yet the majority of newbie traders fall into this boat - making it mathematically a near certainty they go bust when they hit their first losing streak.
 
comagnum said:
You compare trading costs to your capital. Trading costs are typically ignored by the many misinformed traders. My trading costs are on average 1.5% of my capital.

I would hate to have to make 20-100%+ just to break even yet the majority of newbie traders fall into this boat - making it mathematically a near certainty they go bust when they hit their first losing streak.
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ok, must be a capital/trading costs ratio, sounds better

if trading costs is more than 1.5% it is time to consider others brokers? or increase the capital?
 
Last edited:
The main thing is to be aware of you trading costs (commissions & slippage. During losing periods the drag from trading costs knocks out many active traders. Being disciplined to limit your trading activity during losing periods will help a great deal. Getting better commissions & less slippage will also help to a smaller degree.
 
sorry for my one liner answer but I am just answering the topic question. if you have a positive ratio at the end of the day, you're doing quite well. most trader don't even get that.
 
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