What price a profit - counting the cost
For the virgin investor who plans to buy and hold stock for the medium to long term, the overheads are minimal. Any broker commission, stamp duty or other costs will probably play little part in their success or failure.
For the virgin trader like myself however, it is not so simple and the more you trade the greater the accumulative costs involved in buying and selling share. I have to admit when I first began trading in my dummy paper trading account I was focused completely on what stocks to add, how much they were, and were they going up or down. The typical virgin mindset I think? Broker commissions may seem nothing compared to the potential mouth watering riches awaiting a budding trader, but they all add up. Trading overheads directly related to the buy and sell include commissions, slippage and expenses. Unless you pay attention to these costs you will soon be dead in the water and this is particularly true for the small trader (we’re not talking height here). However whatever size account you have DON'T OVERTRADE. Each time you trade you make it harder to come out on top and remember use an execution only broker. Get a cheap, no frills online broker, don't waste your money on full service (advice) brokers. Even the virgin can see they have not done all that well is recent times. I prefer to make my own mistakes. A virgin trader
For the virgin trader like myself however, it is not so simple and the more you trade the greater the accumulative costs involved in buying and selling share. I have to admit when I first began trading in my dummy paper trading account I was focused completely on what stocks to add, how much they were, and were they going up or down. The typical virgin mindset I think? Broker commissions may seem nothing compared to the potential mouth watering riches awaiting a budding trader, but they all add up. Trading overheads directly related to the buy and sell include commissions, slippage and expenses. Unless you pay attention to these costs you will soon be dead in the water and this is particularly true for the small trader (we’re not talking height here). However whatever size account you have DON'T OVERTRADE. Each time you trade you make it harder to come out on top and remember use an execution only broker. Get a cheap, no frills online broker, don't waste your money on full service (advice) brokers. Even the virgin can see they have not done all that well is recent times. I prefer to make my own mistakes. A virgin trader
