FOREX TRADERS

[CPTMatt]

Spreads (commissions) will kill ya if you are doing more than a couple transactions a day.

If you think about it. If you're trading 10,000 blocks and trade in and out of 5 positions per day at 2 pip spread that is $20/day. $20/day * 200 days is $4,000. That will eat into your P&L real quick. Of course if you're only getting 3 pips average spread it gets worse, plus you are probably trading larger blocks.

So "scalping" for 5 pips (if that's what you are doing) ends up being bad business. Scalping for 10 pips isn't that much better either.