Friday, April 19, 2013

% Commision Round Trip

Here is a graph that I would like to share that shows the (amount in your account) based on (round trip commissions) i.e. how much you need to make on a trade to break-even. Commissions are based on TDAmeritrade account. A typical green horn opens an account close to 5k, and isn't aware of a realistic target for there trade to at least break even on there commissions. Not knowing this will result in a draw down over time and a decreasing profit and loss over a extended period of time, and not to mention if you lose on the trade. Having an objective consistent proven target with a small account size is crucial to success.