What is a good ratio between your trading income and commision?

Discussion in 'Professional Trading' started by mrfong8, May 27, 2005.

  1. FredBloggs

    FredBloggs Guest

    this is a great question.

    makes me think anyway!!

    i must admit - part of me resents working for the broker, but as some have said, why bother about the brokers pay. our net is more important. it would be the same profit split if i was in a prop shop anyhow!!
     
    #11     May 28, 2005
  2. Average $1000 per day profits
    Commissions average $150 per day
     
    #12     May 28, 2005
  3. Tradefox

    Tradefox

    I have a friend that takes one trade per month on average $50 comm and his average profit is 5k.
     
    #13     May 28, 2005
  4. mrfong8

    mrfong8

    i agree w/ Commission being part of the cost of doing business,

    the problem i see with overtrading is also exposing yourself to unnecessary risk, and maybe slippage also.

    i would think 1 to 1 is pretty high
     
    #14     May 28, 2005
  5. kubilai

    kubilai

    It mostly depends on your time frame I'd think, a successful long term investor should have a much higher profit:commission ratio than a skalper. My own 7:1 ratio comes from a 2-5 day holding time. Any day traders care to comment?
     
    #15     May 28, 2005