A few problems with this measure... Suppose trader A trades F, a $8 stock, every day for a week and makes 100 cents (the minimum increment in stocks, equivalent to a pip in fx). Trader B trades GS, a $150 stock and also makes 100 cents. Who's the better trader? Maybe measure cents per share traded to equalize the volatility of these two stocks. But suppose they both make 2 cents per share traded but trader A makes 10x as many traders as trader B. Who's the better trader? If I told you I netter '74 cents' yesterday, would that mean anything?
That's exactly how I train the bootcampers on the opening only strategy.....tell me "how many cents you made, not dollars". Whether it's on 100 shares on day one, or 2,000 shares at the end of training...the consistency is important....we can always "dial up" the volume for more actuall $$. Don
I used to track that stat from my openings too, but quit because it's meaningless. 10 cents on a $10 stock is a significant move, on a $150 stock it means nothing at all. Unless all your stocks have the same level of volatility and trade roughly at the same price, total cents is useless as a meaningful statistic.
That's exactly how I train the bootcampers on the opening only strategy.....tell me "how many cents you made, not dollars". Whether it's on 100 shares on day one, or 2,000 shares at the end of training...the consistency is important....we can always "dial up" the volume for more actual COMMISH!! $$.
Cost of doing business....if you can tell Goldman to stop charging me, I'll be forever in your debt. LOL. Our pricing is actually geared that we would make more commish if we kept everyone trading less than 1,000 shares. So, we let our traders decide how much or little they want to trade. No big deal. All the best, Mr. Indexarb! Don
Of course I agree, but for initial training we keep stocks in the $25-$45 price range for the most part. I don't like the slippage from high price stocks...bid/ask too wide quite often. Just trying to show a meaningful improvement early on, it does wonders for the new trader's "psyche" to see consistency and (hopefully) a bit more net profits. I do certainly respect your abilities, and especially your accurate record keeping...I wish I could instill that discipline in everyone. Don
Just having a little fun. I am in a playful mood today. Have a great weekend everybody -- off to Patagonia's 50% outlet sale.
Always good to see everyone in a congenial mood here on ET. Heck, half my office already went to the MGM Grand to play poker, LOL....cutting into my commish damnit! LOL.... Have fun, be safe this weekend everyone. Don