What is a good profit/commission+fees ratio?

Discussion in 'Stocks' started by Evermore2017, Feb 9, 2018.

  1. 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
     
  2. magicz

    magicz

    you must be kidding right? anything over 0.0 is good.
     
    cdcaveman likes this.
  3. Saltynuts

    Saltynuts

    Gordon Ghecko right here folks!!!
     
  4. bpr

    bpr

    for swing trader it is less than 2 or 1 percent
    but for intraday trader it is much higher ..but I think 30% is max ..
    anything more is not sustainable
     
  5. comagnum

    comagnum

    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.
     
    murray t turtle, Xela and Visaria like this.
  6. rb7

    rb7

    So, you consider 200% as a good ration????

    You must be a broker if this is the case...
     
  7. 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: Feb 11, 2018
  8. comagnum

    comagnum

    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.
     
  9. magicz

    magicz

    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.