Does anyone here just take a one cent clip and then exit their trade and just do this over and over? Seems like a pretty safe, if tiresome strategy. Does anyone do this? If so, how successful have you been? What type of stops do you use? Cheers!
Brilliant Idea. I actually tried this a few months ago and made a killing. Made so much money.. just bought a few homes in CA the other week. Too bad for people like you that are giving away my edge on a free message board.
Trend is your friend Cut your less short and let your profits run One big trade will cancel out 10 small losses and then refine the strategy to avoid losser signals. Even at 30-70 odds against you, your account might still come out ahead.
This is the entire basis of many prop firms. Some are doing great, but i would field a slightly educated guess that most of the individual traders are not doing that great. Reason being that if your only making 1 cent per trade and have to rely on being filled enough shares on each side with super low commisions, you have to be right at least 60% of the time to make anything. 5 good trades can be destroyed by 1 bad loss, whereas trend trading 1 winner can wipe out 5 losses.
It is impossible to make money by trading for one cent gains because commissions and sec fees will certainly eat up the profit. I challenge anyone to do such a thing. The only way to win by trading for one cent is to kill the middleman(broker), which is another mission impossible.