A.I.M. Users Bulletin Board

[lifo]

Hi Tom, Re. making more than the broker...

Congratulations on the sale of JBL...well done!

Where I sometimes look to see if what I doing makes sense is the incremental profit on the next sell. For example, let's say the next sell price is $33.34, which is about 5% above the previous sell price of $31.75. The additional profit per share will be $33.34 - $31.75 = $1.59. Selling 100 shares @ $33.34 (Trade Amount = $3,334) would result in an incremental profit of $159. The $10 commission is only 6% of the incremental profit. That's not bad. Even if you traded 50 shares ($1,667), the commission would be about 12% of the incremental profit, and that's still not too bad.

Over here, I am paying $26.99 Cdn. per trade. On a smaller trade amount of, say, $1,500, the commission cost can be a significant percent of the incremental profit. And, when the commission gets to be more than 25% of the incremental profit, then it doesn't seem like a good deal for me, in which case, the trade amount needs to be much bigger to make it seem worthwhile.

Regards,

Jack