facebookI understand that it's really hard to be profitable doing day trading but what about position or swing trading? How profitable is it? - Seedly

Anonymous

21 Jun 2020

General Investing

I understand that it's really hard to be profitable doing day trading but what about position or swing trading? How profitable is it?

Discussion (1)

What are your thoughts?

Learn how to style your text

Malvin Tan WP

21 Jun 2020

Writer at t.me/pwpfpodcast

Yes indeed it is harder because the greater the number of transactions the greater friction to reach your goal. It would also depends on your goal or expected returns from day trading i.e 5% p.a or 20% p.a? What would be worthwhile in profits to you.
Friction here means the transaction costs;

For example if you make one trade it would cost 0.08% for brokerage fee. And for each counter/position you would have to buy and sell hence 0.16% per position per day.

Now in day trading say minimally you take a position once per day.

In a month 30 position

That would add up to approximately -5% friction irregardless of the profit or loss of your positions. How much profit do you have to make before fees such that you will get a satisfactory result?

Write your thoughts