Generally, when I trade, I estimate how many cents it would take for a stock to move to pare it out. For example, with an $18 per position fee, if you earned 1c on a position of 1,800 shares, you would already be able to pare it out.
If you only have 900 shares, you would need 2c to pare it out. And 450, you would need 4c to pare it out. And so on.
You look at how the stock usually moves, and if it moves by a lot (High:Low ranges of 50c or more), this isn't an issue, and you can fare with a lower amount of shares. If it doesn't move by much (e.g. only 10c a day), you may be looking at a long-term trade, or a commissions handicap against you (since you're immediately at a loss).
There is no minimum amount of money as each stock varies in price, especially if margin is involved. You should be asking for the minimum share count instead.
Wow I appreciate the prompt responses! I've been stuck on about neutral since I started in the Spring. I've been up down (last month as you know) and now back to the water line. I started to notice I was burning money just doing conservative trades but I have interest in the volatile tech stocks. I'm trying to think of it as paying to learn concerning the trade fees. I could "ghost trade" but as you know it's not as fun. I actually enjoy reading the tech industry news (although I did invest in a highly touted investment firm to see if my broker actually knows what they are talking about per their recommendation).. My handicap is I'm not investing enough out of anxiety so now I'm looking at the more stable blue chips (so to speak) of media (my degree). So I'm thinking of bigger trades now. I'm looking long term at 41 years old I'm a little late to the game so I'm trying to ketchup:). Being newly middle aged and having a toddler (with custodial account for her) I'm trying to be somewhat aggressive. You really do reflect at 40! I have a decent amount of capital with zero debt but I'm learning as I go so I digress I'm kinda scared with this bull market for so long thinking I got in right before a major correction of the Bears. Thanks for the help.
Decide on your commission threshhold, say 1%,and double it. Then (100/2)* $9 gives the minimum amount of investment and the break-even figure.
The more that is invested,the lower the commission rate and vice versa.
You should spend it on a very popular penny stock something in the range of $40, this is something worth buying. Just make sure the company you're investing in has everything you need.
For a fixed trade fee, the higher the transaction, the better the bargain.
get smart-put your money in a index fund-read some books on mutal funds-you will be better off
My personal rule is that commission should be at most 0.5% of the gross.
so 1800 bucks.
