SlideShare une entreprise Scribd logo
1  sur  31
Télécharger pour lire hors ligne
Cost of Trading
By
www.CandlestickForums.com
The cost of trading includes more than
commissions, fees, and premiums.
www.CandlestickForums.com
The cost of trading takes in all monies
paid and foregone in the pursuit of
opportunity in trading stocks,
commodities, futures, and options
contracts.
www.CandlestickForums.com
Online brokers can attract clients with
the promise of low commissions.
www.CandlestickForums.com
Although commissions count in the cost
of trading they can pale in comparison
to the cost of trading in low volume with
www.CandlestickForums.com
large spreads between bid and ask
prices if traders do not place limit
orders.
www.CandlestickForums.com
The cost of small cap stock investing
especially can mount up if volume is low
and liquidity nil.
www.CandlestickForums.com
Part of trading analysis needs to extend
beyond the spot price and the strike
price,
www.CandlestickForums.com
beyond Candlestick chart analysis and
fundamental analysis to look at the cost
of trading in various markets and
conditions.
www.CandlestickForums.com
Commissions and fees are something
that you will see on the printout of your
trades.
www.CandlestickForums.com
Commissions have certainly come down
from what they were years ago although
fees are still with us.
www.CandlestickForums.com
This is part of the cost of doing business.
www.CandlestickForums.com
For the active trader it makes all the
sense in the world to trade blocks of
equities at a flat rate instead of a
percentage.
www.CandlestickForums.com
It may seem that sufficiently successful
stock picking, options trading, or
commodity investing is all that is
necessary but all costs should be taken
into account.
www.CandlestickForums.com
The premium paid in buying calls and
buying puts will vary with the price of
the underlying equity.
www.CandlestickForums.com
It is a larger cost of trading for the
unwary trading in hope of a market rally
or collapse. Profit is gain minus cost,
every cost.
www.CandlestickForums.com
Only using limit orders instead of buying
and selling stock or other equities at
market price should be a daily practice.
www.CandlestickForums.com
The spread between bid and ask price is
the difference between what sellers are
offering at and buyers are offering.
www.CandlestickForums.com
In a slow market this difference in price
can be rather large.
www.CandlestickForums.com
Also the number of stock shares being
offered or bid for may be relatively
small.
www.CandlestickForums.com
This presents two problems that affect
the cost of trading.
www.CandlestickForums.com
A trader who buys and must promptly
sell equities will pay the difference
between bid and ask price for this
experience.
www.CandlestickForums.com
This cost can be substantially more than
commissions and fees, especially on low
cap and penny stocks that are already
thinly traded.
www.CandlestickForums.com
The other issue is one of availability. If
the trader places a large order to buy or
sell there may not be enough of the
equity available.
www.CandlestickForums.com
The depth of the market is not very
deep.
www.CandlestickForums.com
Thus your stock order, or futures orders
or options orders, will not be completely
filled.
www.CandlestickForums.com
If you have not placed a limit order the
reminder of your sale or purchase may
be completed at disadvantageous prices.
www.CandlestickForums.com
If you are thinking of making a trade at
market price the market can change in
these circumstances to your distinct
disadvantage.
www.CandlestickForums.com
The cost of trading should go into long
and short term assessment of what
markets you trade,
www.CandlestickForums.com
if you wait for high volume and high
liquidity to trade, and if you sit out some
market conditions altogether.
www.CandlestickForums.com
Online Stock Market Reviews presented
live via the internet by Stephen Bigalow
www.CandlestickForums.com

Contenu connexe

Plus de InvestingTips

Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?InvestingTips
 
Accredited Investors At 80 Or More Years Old
Accredited Investors At 80 Or More Years OldAccredited Investors At 80 Or More Years Old
Accredited Investors At 80 Or More Years OldInvestingTips
 
How Many AK47s Did Hamas Buy With Crypto?
How Many AK47s Did Hamas Buy With Crypto?How Many AK47s Did Hamas Buy With Crypto?
How Many AK47s Did Hamas Buy With Crypto?InvestingTips
 
What Happened to the Bitcoin Stock Correlation?
What Happened to the Bitcoin Stock Correlation?What Happened to the Bitcoin Stock Correlation?
What Happened to the Bitcoin Stock Correlation?InvestingTips
 
Uranium Backed Crypto Tokens
Uranium Backed Crypto TokensUranium Backed Crypto Tokens
Uranium Backed Crypto TokensInvestingTips
 
$4 Billion to Settle Binance Case
$4 Billion to Settle Binance Case $4 Billion to Settle Binance Case
$4 Billion to Settle Binance Case InvestingTips
 
How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?InvestingTips
 
Blockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterBlockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterInvestingTips
 
What Is the Sam Bankman-Fried Lesson?
What Is the Sam Bankman-Fried Lesson?What Is the Sam Bankman-Fried Lesson?
What Is the Sam Bankman-Fried Lesson?InvestingTips
 
How Dangerous Is Crypto Leverage?
How Dangerous Is Crypto Leverage?How Dangerous Is Crypto Leverage?
How Dangerous Is Crypto Leverage?InvestingTips
 
Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024InvestingTips
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?InvestingTips
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?InvestingTips
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?InvestingTips
 
Metaverse Propelled By Activision Blizzard Acquisition
Metaverse Propelled By Activision Blizzard AcquisitionMetaverse Propelled By Activision Blizzard Acquisition
Metaverse Propelled By Activision Blizzard AcquisitionInvestingTips
 
Do Higher Interest Rates Help or Hurt Crypto?
Do Higher Interest Rates Help or Hurt Crypto?Do Higher Interest Rates Help or Hurt Crypto?
Do Higher Interest Rates Help or Hurt Crypto?InvestingTips
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?InvestingTips
 
Who’s Rules Will Crypto Follow?
Who’s Rules Will Crypto Follow?Who’s Rules Will Crypto Follow?
Who’s Rules Will Crypto Follow?InvestingTips
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?InvestingTips
 

Plus de InvestingTips (20)

Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?Are Private Digital Tokens On Their Way Out?
Are Private Digital Tokens On Their Way Out?
 
Accredited Investors At 80 Or More Years Old
Accredited Investors At 80 Or More Years OldAccredited Investors At 80 Or More Years Old
Accredited Investors At 80 Or More Years Old
 
How Many AK47s Did Hamas Buy With Crypto?
How Many AK47s Did Hamas Buy With Crypto?How Many AK47s Did Hamas Buy With Crypto?
How Many AK47s Did Hamas Buy With Crypto?
 
What Happened to the Bitcoin Stock Correlation?
What Happened to the Bitcoin Stock Correlation?What Happened to the Bitcoin Stock Correlation?
What Happened to the Bitcoin Stock Correlation?
 
Uranium Backed Crypto Tokens
Uranium Backed Crypto TokensUranium Backed Crypto Tokens
Uranium Backed Crypto Tokens
 
$4 Billion to Settle Binance Case
$4 Billion to Settle Binance Case $4 Billion to Settle Binance Case
$4 Billion to Settle Binance Case
 
How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?How Would a Crypto Privacy Pool Work?
How Would a Crypto Privacy Pool Work?
 
Blockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterBlockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto Winter
 
What Is the Sam Bankman-Fried Lesson?
What Is the Sam Bankman-Fried Lesson?What Is the Sam Bankman-Fried Lesson?
What Is the Sam Bankman-Fried Lesson?
 
How Dangerous Is Crypto Leverage?
How Dangerous Is Crypto Leverage?How Dangerous Is Crypto Leverage?
How Dangerous Is Crypto Leverage?
 
Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?
 
Bitcoin Versus NFTs
Bitcoin Versus NFTsBitcoin Versus NFTs
Bitcoin Versus NFTs
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?
 
Metaverse Propelled By Activision Blizzard Acquisition
Metaverse Propelled By Activision Blizzard AcquisitionMetaverse Propelled By Activision Blizzard Acquisition
Metaverse Propelled By Activision Blizzard Acquisition
 
Do Higher Interest Rates Help or Hurt Crypto?
Do Higher Interest Rates Help or Hurt Crypto?Do Higher Interest Rates Help or Hurt Crypto?
Do Higher Interest Rates Help or Hurt Crypto?
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?
 
Who’s Rules Will Crypto Follow?
Who’s Rules Will Crypto Follow?Who’s Rules Will Crypto Follow?
Who’s Rules Will Crypto Follow?
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?
 

Dernier

Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...
Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...
Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...virgfern3011
 
Anantkumar Hegde
Anantkumar Hegde  Anantkumar Hegde
Anantkumar Hegde NewsFeed1
 
Light Rail in Canberra: Too much, too little, too late: Is the price worth th...
Light Rail in Canberra: Too much, too little, too late: Is the price worth th...Light Rail in Canberra: Too much, too little, too late: Is the price worth th...
Light Rail in Canberra: Too much, too little, too late: Is the price worth th...University of Canberra
 
Ministry of Justice Extradition Eswatini 3.pdf
Ministry of Justice Extradition Eswatini 3.pdfMinistry of Justice Extradition Eswatini 3.pdf
Ministry of Justice Extradition Eswatini 3.pdfSABC News
 
19032024_First India Newspaper Jaipur.pdf
19032024_First India Newspaper Jaipur.pdf19032024_First India Newspaper Jaipur.pdf
19032024_First India Newspaper Jaipur.pdfFIRST INDIA
 
Européennes 2024 : projection du Parlement européen à trois mois du scrutin
Européennes 2024 : projection du Parlement européen à trois mois du scrutinEuropéennes 2024 : projection du Parlement européen à trois mois du scrutin
Européennes 2024 : projection du Parlement européen à trois mois du scrutinIpsos France
 
Por estos dos motivos, defensa de JOH solicita repetir juicio
Por estos dos motivos, defensa de JOH solicita repetir juicioPor estos dos motivos, defensa de JOH solicita repetir juicio
Por estos dos motivos, defensa de JOH solicita repetir juicioAlexisTorres963861
 
One India vs United India by Dream Tamilnadu
One India vs United India by Dream TamilnaduOne India vs United India by Dream Tamilnadu
One India vs United India by Dream TamilnaduDreamTamilnadu
 
Another Day, Another Default Judgment Against Gabe Whitley
Another Day, Another Default Judgment Against Gabe WhitleyAnother Day, Another Default Judgment Against Gabe Whitley
Another Day, Another Default Judgment Against Gabe WhitleyAbdul-Hakim Shabazz
 

Dernier (9)

Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...
Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...
Green Aesthetic Ripped Paper Thesis Defense Presentation_20240311_111012_0000...
 
Anantkumar Hegde
Anantkumar Hegde  Anantkumar Hegde
Anantkumar Hegde
 
Light Rail in Canberra: Too much, too little, too late: Is the price worth th...
Light Rail in Canberra: Too much, too little, too late: Is the price worth th...Light Rail in Canberra: Too much, too little, too late: Is the price worth th...
Light Rail in Canberra: Too much, too little, too late: Is the price worth th...
 
Ministry of Justice Extradition Eswatini 3.pdf
Ministry of Justice Extradition Eswatini 3.pdfMinistry of Justice Extradition Eswatini 3.pdf
Ministry of Justice Extradition Eswatini 3.pdf
 
19032024_First India Newspaper Jaipur.pdf
19032024_First India Newspaper Jaipur.pdf19032024_First India Newspaper Jaipur.pdf
19032024_First India Newspaper Jaipur.pdf
 
Européennes 2024 : projection du Parlement européen à trois mois du scrutin
Européennes 2024 : projection du Parlement européen à trois mois du scrutinEuropéennes 2024 : projection du Parlement européen à trois mois du scrutin
Européennes 2024 : projection du Parlement européen à trois mois du scrutin
 
Por estos dos motivos, defensa de JOH solicita repetir juicio
Por estos dos motivos, defensa de JOH solicita repetir juicioPor estos dos motivos, defensa de JOH solicita repetir juicio
Por estos dos motivos, defensa de JOH solicita repetir juicio
 
One India vs United India by Dream Tamilnadu
One India vs United India by Dream TamilnaduOne India vs United India by Dream Tamilnadu
One India vs United India by Dream Tamilnadu
 
Another Day, Another Default Judgment Against Gabe Whitley
Another Day, Another Default Judgment Against Gabe WhitleyAnother Day, Another Default Judgment Against Gabe Whitley
Another Day, Another Default Judgment Against Gabe Whitley
 

Cost of Trading

  • 2. The cost of trading includes more than commissions, fees, and premiums. www.CandlestickForums.com
  • 3. The cost of trading takes in all monies paid and foregone in the pursuit of opportunity in trading stocks, commodities, futures, and options contracts. www.CandlestickForums.com
  • 4. Online brokers can attract clients with the promise of low commissions. www.CandlestickForums.com
  • 5. Although commissions count in the cost of trading they can pale in comparison to the cost of trading in low volume with www.CandlestickForums.com
  • 6. large spreads between bid and ask prices if traders do not place limit orders. www.CandlestickForums.com
  • 7. The cost of small cap stock investing especially can mount up if volume is low and liquidity nil. www.CandlestickForums.com
  • 8. Part of trading analysis needs to extend beyond the spot price and the strike price, www.CandlestickForums.com
  • 9. beyond Candlestick chart analysis and fundamental analysis to look at the cost of trading in various markets and conditions. www.CandlestickForums.com
  • 10. Commissions and fees are something that you will see on the printout of your trades. www.CandlestickForums.com
  • 11. Commissions have certainly come down from what they were years ago although fees are still with us. www.CandlestickForums.com
  • 12. This is part of the cost of doing business. www.CandlestickForums.com
  • 13. For the active trader it makes all the sense in the world to trade blocks of equities at a flat rate instead of a percentage. www.CandlestickForums.com
  • 14. It may seem that sufficiently successful stock picking, options trading, or commodity investing is all that is necessary but all costs should be taken into account. www.CandlestickForums.com
  • 15. The premium paid in buying calls and buying puts will vary with the price of the underlying equity. www.CandlestickForums.com
  • 16. It is a larger cost of trading for the unwary trading in hope of a market rally or collapse. Profit is gain minus cost, every cost. www.CandlestickForums.com
  • 17. Only using limit orders instead of buying and selling stock or other equities at market price should be a daily practice. www.CandlestickForums.com
  • 18. The spread between bid and ask price is the difference between what sellers are offering at and buyers are offering. www.CandlestickForums.com
  • 19. In a slow market this difference in price can be rather large. www.CandlestickForums.com
  • 20. Also the number of stock shares being offered or bid for may be relatively small. www.CandlestickForums.com
  • 21. This presents two problems that affect the cost of trading. www.CandlestickForums.com
  • 22. A trader who buys and must promptly sell equities will pay the difference between bid and ask price for this experience. www.CandlestickForums.com
  • 23. This cost can be substantially more than commissions and fees, especially on low cap and penny stocks that are already thinly traded. www.CandlestickForums.com
  • 24. The other issue is one of availability. If the trader places a large order to buy or sell there may not be enough of the equity available. www.CandlestickForums.com
  • 25. The depth of the market is not very deep. www.CandlestickForums.com
  • 26. Thus your stock order, or futures orders or options orders, will not be completely filled. www.CandlestickForums.com
  • 27. If you have not placed a limit order the reminder of your sale or purchase may be completed at disadvantageous prices. www.CandlestickForums.com
  • 28. If you are thinking of making a trade at market price the market can change in these circumstances to your distinct disadvantage. www.CandlestickForums.com
  • 29. The cost of trading should go into long and short term assessment of what markets you trade, www.CandlestickForums.com
  • 30. if you wait for high volume and high liquidity to trade, and if you sit out some market conditions altogether. www.CandlestickForums.com
  • 31. Online Stock Market Reviews presented live via the internet by Stephen Bigalow www.CandlestickForums.com