Registered: Jan 2011
05-17-11 02:10 PM
Quote from oilfxpro:
The facts are ay trader does 30 trades a day , in a zero sum game , and pays 2 pip spread 30 times a day.60 pips a day in spreads is lost.
Swing trader trades 3 times a day and pays 6 pips spread.
Net loss is 54 pips for day trader.The answer is here.
1. 2 pips spread is ridiculous. Boot your broker and choose another one.
2. It is not a loss, it is an expense... Yes, it is significantly higher, but so is the profit. Many scalpers, including HFT algos pay absolutely huge amount in commissions, but nevertheless end up well in the green.
In this business, it is not critical how much you lose or pay to your broker. How much you make or lose after you subtract your expenses and losses from your wining trades profit, that is critical.
This relates to both trading losses and expenses, such as spread, commissions etc.