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Old 02-11-2008, 12:23 PM   #489
wouwou
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Join Date: Nov 2005
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Quote:
Originally posted by eddyc
also another question for you experienced traders. I'm newbie and I saw every trade cost around $29 a transaction (relative to the trading company you're with)...

So if I'm planning to play with penny stocks, let's say I buy a 10 shares @ .50 and sell them on couple hours later for $1.00...

I would have made $5 profit, but would have to pay $58 ($29X2) for the TWO transactions I made? So I would have taken a loss at $53...

Is my logic right?

Is it really worth it to be trading it at $29 / transaction then? Or does daily- trading usually outweighs the costs??

Thanks
you need to change your broker and google is your friend on that.

Basically for transaction costs 29+, you can not afford to play with daily transactions unless you are going at the million level.
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