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
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No one would only put in like $5 per trade. Trading stocks is not like buying lottery tickets. You need a more than a few dollars of capital at risk.
You really need to be putting in at least a couple of grand PER TRADE to make trading worthwhile. I think a good amount to start off with is 10K.
Anyways, you really should be careful with Penny Stocks and do your own research. Most penny stock markets are completely rigged anyways for the promoters. Not that you can't make money from trading penny stocks, but it is far different than your traditional investments in large caps or mutual funds.