yes, well since I get paid 100% commission, if I am not profitable I dont get paid. I get to take 45% of anything I make in a month. So for the last 2 weeks I've been slowly losing small amounts, and not making much at all, and I am afraid to up my trading amounts in fears that if I mess up with more than 100 shares, it would be expensive to cover from my pocket. So until I can see some positive improvement from my performance with 100 shares per trade, pax position of 500, I wont get into larger amounts.
I can trade any stock I want really, I started off with SIRI, but that stock tends to swing too much, and I usually end up on the wrong side. So I switched to SUNW because it has high volume and usually doesnt swing more than 5 cents either way in a day trading. Which means for me it seems safer for the time of learning.
Right, what about msft, csco? your .3C commission wouldn't be as bad with a bigger price swing although still a small %.
.3C commission? I dont understand, do different stocks pay different credits? I thought Nasdaq paid a flat 2/10 cent only. msft, csco have fairly large swings, usually in more than 20 cents on daily basis from what I've seen, after SIRI that always scares me.
"and I am afraid to up my trading amounts in fears that if I mess up with more than 100 shares, it would be expensive to cover from my pocket." Am I correct in understanding that you have to cover your own losses? Is the firm only cutting you 45% of profits and you're on the hook for losses? Where's their risk?
Well, if you quit the firm, then you dont have to cover your losses, but lets say you ended June with -$2000, that would be carried over to July, so if you want to get paid in July, you need to make back those $2000 and then if you make more, is what you will get paid from. But if you are consistently running up losses on monthly basis, you will either quit cuz you arent getting paid, or they will fire you.
Look the truth is that to "make it" as a credit / penny trader you have to get the lowest rock bottom commissions. To do this, you have to be doing VOLUME. To get to be doing that volume you need to somehow make consistent NET with your current non competitive commission structure and stepping up your volume as you are trading against experienced penny/rebate traders who have the best commission structure.
Yes I know I need volume, but if I am doing volume, then at the current rate I'll just lose more. Consistent net is my aim for now. To: Johnd83 I dont understand your post at all...is 45% uncommon, common?