Costs of trading

Discussion in 'Professional Trading' started by Fonz, May 16, 2017.

  1. themickey

    themickey

    Discretionary Trading: stocks, options, futures, day trading combined with swing trading.
    This sounds like a recipe for disaster.

    Have you added your hourly rate costs because I can imagine you are working like a Trojan.

    Simplify your trading, drop your labour hours, increase your position size, be an expert in one field, not a Jack of all trades would be my advice.
     
    #21     May 17, 2017
  2. I see. If you can deduct those market data costs then these are indeed of lesser importance to you.
     
    #22     May 17, 2017
  3. Fonz

    Fonz

    Yesterday results of swing trading = very bad, like always during a big 1 day drop after +10 up days. 1 day total trading capital DD = -3.85% (high leverage)
    Yesterday results of day trading = very good (very very good actually) on SPX and volatility ETF.
    1 day total trading capital DD = +5.9% (single call and put options only)
    This recipe works well so far. This is my way of hedging my leveraged swing trading.

    Yesterday IB option costs = $133.31
     
    #23     May 18, 2017
  4. atrp2biz

    atrp2biz

    Not all opportunity costs are created equal but I agree that it should be a consideration into one's costs. I've left a six-figure job to be a stay-at-home dad for my three kids as my wife make an order of magnitude more than me. As a result, I'm not working because of trading therefore it's not necessarily an opportunity cost for me.
     
    #24     May 31, 2017
  5. Lost in this discussion of expenses/commissions , is the execution routing. I'm thinking of moving some funds to cheaper brokers vs. IB . The SEC 606 reports of some of them is giving me pause... some firms route 100% of their orders to MM firms. I can't envision scenarios how that would translate to better price execution of option spreads. Your thoughts? Thanks.
     
    #25     Jun 1, 2017
  6. MattZ

    MattZ Sponsor

    #26     Jun 7, 2017