Comments on: The 1% Stock Trading Rule http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm Building Wealth through Saving and Investing Sun, 12 Feb 2012 07:02:44 -0330 http://wordpress.org/?v=abc hourly 1 By: Jay http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-105792 Jay Tue, 06 Oct 2009 02:31:25 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-105792 an interesing rule, but very valid. i never really looked at it before, however since i am active i will definitely pay more attn. that being said my trades are always in the thousands so i don't think this really applies but i think it could effect the sort of stradegy you employ when u trade. i was reading about this one dood, who made very small day trades for a small profit, typically anywhere btw 25 to 180 each. he paid a 10 fee per trade. if he paid a 30 it would severely cramp his style. an interesing rule, but very valid. i never really looked at it before, however since i am active i will definitely pay more attn. that being said my trades are always in the thousands so i don’t think this really applies but i think it could effect the sort of stradegy you employ when u trade. i was reading about this one dood, who made very small day trades for a small profit, typically anywhere btw 25 to 180 each. he paid a 10 fee per trade. if he paid a 30 it would severely cramp his style.

]]> By: How to Invest with Small Amounts per Month | Million Dollar Journey http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-73121 How to Invest with Small Amounts per Month | Million Dollar Journey Wed, 11 Mar 2009 11:30:33 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-73121 [...] This would help reduce transactions which in turn reduces trading costs.  For me, I use the 1% trading rule.  That is, the purchase commission should never be more than 1% of the total transaction [...]

[...] This would help reduce transactions which in turn reduces trading costs.  For me, I use the 1% trading rule.  That is, the purchase commission should never be more than 1% of the total transaction [...]

]]> By: Charles in Vancouver http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-42703 Charles in Vancouver Mon, 07 Jul 2008 07:24:54 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-42703 Dividendgrowth: Again, this is a Canadian blog, and Canadians do not have access to American brokerages such as Zecco. Even when we buy US stocks we need to use brokerage with Canadian operations. Dividendgrowth: Again, this is a Canadian blog, and Canadians do not have access to American brokerages such as Zecco. Even when we buy US stocks we need to use brokerage with Canadian operations.

]]> By: Dividendgrowth http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-25344 Dividendgrowth Tue, 12 Feb 2008 19:59:14 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-25344 One way to follow this rule is to buy index mutual funds like S&P 500 ones, which have low annual expense of 0.1%. Or if you must do your own stock selection in US, you can sign up for Zecco - 10 free trades per month is more than you need as a passive investor.. One way to follow this rule is to buy index mutual funds like S&P 500 ones, which have low annual expense of 0.1%. Or if you must do your own stock selection in US, you can sign up for Zecco – 10 free trades per month is more than you need as a passive investor..

]]> By: Tanady http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9679 Tanady Sun, 05 Aug 2007 20:09:22 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9679 Hello, Your blog are really well organized and full of information. Thank you for sharing... (smile) My name is Cornel Tanady, and have been doing some research about options trading. Kindly <a href="http://www.options-university.biz/blog/stock-options-trading/stock-option-trading" rel="nofollow">visit my blog</a> to know more about options trading and comments will be greatly appreciated. Thank you very much. Sincerely, Tanady Hello,

Your blog are really well organized and full of information. Thank you for sharing… (smile)

My name is Cornel Tanady, and have been doing some research about options trading.

Kindly visit my blog to know more about options trading and comments will be greatly appreciated.

Thank you very much.

Sincerely,
Tanady

]]> By: MoneySheep http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9616 MoneySheep Sat, 04 Aug 2007 14:16:16 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9616 Before buying or selling (using an agent), you should analyze this: "Do this for me, I will give you 2% of my asset, is this reasonable?" The answer depends on your knowledge about the agent. The know-nothing person will probably say it is ok. If you know the agent takes no effort at all, and your data (say, from the annual report of the agent/broker) shows that their profit from doing this is huge, you know you are being taken advantage of, they can cut down their fee. Canadian don't stand up for being gouged, so the financial institution keep milking the cow. Another thorn is the real estate industry. Do this for me, I will give you 7% of my asset. Before buying or selling (using an agent), you should analyze this: “Do this for me, I will give you 2% of my asset, is this reasonable?” The answer depends on your knowledge about the agent. The know-nothing person will probably say it is ok. If you know the agent takes no effort at all, and your data (say, from the annual report of the agent/broker) shows that their profit from doing this is huge, you know you are being taken advantage of, they can cut down their fee. Canadian don’t stand up for being gouged, so the financial institution keep milking the cow.

Another thorn is the real estate industry. Do this for me, I will give you 7% of my asset.

]]> By: Personal Finance Article Round Up! - Million Dollar Journey http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9523 Personal Finance Article Round Up! - Million Dollar Journey Fri, 03 Aug 2007 07:34:15 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9523 [...] Money has hosted the latest Carnival of Personal Finance.  My article on the 1% stock trading rule was featured as a 2nd stage [...]

[...] Money has hosted the latest Carnival of Personal Finance.  My article on the 1% stock trading rule was featured as a 2nd stage [...]

]]> By: FourPillars http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9331 FourPillars Tue, 31 Jul 2007 11:55:14 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9331 Ed, did those active traders give any indications of their performance? 12% mer is indeed shocking. MIke Ed, did those active traders give any indications of their performance?

12% mer is indeed shocking.

MIke

]]> By: Ed Rempel http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9298 Ed Rempel Tue, 31 Jul 2007 05:11:04 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9298 While I don't buy individual stocks, this is interesting. I have talked to some active traders who get their costs down to 1% for both buy and sell. However, they turn over their portfolio about once/month. A 1%/month cost equals a shocking 12% MER! This is one of the reasons why almost all active traders lose money in the long run. Ed While I don’t buy individual stocks, this is interesting. I have talked to some active traders who get their costs down to 1% for both buy and sell.

However, they turn over their portfolio about once/month. A 1%/month cost equals a shocking 12% MER!

This is one of the reasons why almost all active traders lose money in the long run.

Ed

]]> By: Blain Reinkensmeyer http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9280 Blain Reinkensmeyer Mon, 30 Jul 2007 21:09:22 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9280 Solid article Frugal! Will make a good read for my readers :P Solid article Frugal! Will make a good read for my readers :P

]]> By: Quality Links - July 30 2007 - Stock Trading To Go http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9279 Quality Links - July 30 2007 - Stock Trading To Go Mon, 30 Jul 2007 20:58:36 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9279 [...] up a strong topic for his submissions to the 111th Carnival of Personal Finance discussing the 1% Stock Trading Rule. I like this simple rule especially for new traders who may not have a lot of money to invest with, [...]

[...] up a strong topic for his submissions to the 111th Carnival of Personal Finance discussing the 1% Stock Trading Rule. I like this simple rule especially for new traders who may not have a lot of money to invest with, [...]

]]> By: 111th Carnival of Personal Finance is Up at FinancialDominance.com http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9255 111th Carnival of Personal Finance is Up at FinancialDominance.com Mon, 30 Jul 2007 14:31:57 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9255 [...] Million Dollar Journey talks about the 1% stock trading rule. [...]

[...] Million Dollar Journey talks about the 1% stock trading rule. [...]

]]> By: plonkee money » 111th carnival of personal finance - glastonbury edition http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9245 plonkee money » 111th carnival of personal finance - glastonbury edition Mon, 30 Jul 2007 10:02:10 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9245 [...] the 1% stock trading rule @ million dollar journey, how much should you be paying for trades? - there are some good comments on this post as well [...]

[...] the 1% stock trading rule @ million dollar journey, how much should you be paying for trades? – there are some good comments on this post as well [...]

]]> By: Friday Linking - Stock Trading Edition - Million Dollar Journey http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-9074 Friday Linking - Stock Trading Edition - Million Dollar Journey Fri, 27 Jul 2007 07:31:30 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-9074 [...] Interactive Brokers has reduced their minimum commissions for Canadian trades from $2/trade (200 shares) to $1/trade (100 shares).  Great news for small time traders like me.  Check out how this new fee schedule can affect the 1% stock trading rule. [...]

[...] Interactive Brokers has reduced their minimum commissions for Canadian trades from $2/trade (200 shares) to $1/trade (100 shares).  Great news for small time traders like me.  Check out how this new fee schedule can affect the 1% stock trading rule. [...]

]]> By: A.J. - IAmFacingMillions.com http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-8999 A.J. - IAmFacingMillions.com Thu, 26 Jul 2007 02:17:40 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-8999 I don't necessarily agree. If you are an active trader, definitely. If you are a buy and hold type investor and plan to be into the stock for a few years, then paying more than 1% isn't necessarily that bad of a thing. Now, that said... I would suggest that anyone who cannot put at least $500 into EACH stock trade should probably NOT be picking stocks on their own and should instead consider a mutual fund. It simply isn't cost effective to spend a lot of time learning about stocks, watching them, etc. to make micro trades. But most importantly, I'd rather see a person invest $100 in a solid blue chip stock with a $4 or even a $8 commission than not save $100 at all. I don’t necessarily agree. If you are an active trader, definitely. If you are a buy and hold type investor and plan to be into the stock for a few years, then paying more than 1% isn’t necessarily that bad of a thing.

Now, that said… I would suggest that anyone who cannot put at least $500 into EACH stock trade should probably NOT be picking stocks on their own and should instead consider a mutual fund.

It simply isn’t cost effective to spend a lot of time learning about stocks, watching them, etc. to make micro trades.

But most importantly, I’d rather see a person invest $100 in a solid blue chip stock with a $4 or even a $8 commission than not save $100 at all.

]]> By: The Financial Blogger http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-8955 The Financial Blogger Tue, 24 Jul 2007 23:56:22 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-8955 Like FP, I didn't know about this rule. Quite interesting for a day trader. However, if you buy for long term, this should not affect your overall yield too much. Cheers, FB. Like FP, I didn’t know about this rule. Quite interesting for a day trader. However, if you buy for long term, this should not affect your overall yield too much.
Cheers,
FB.

]]> By: Jason http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-8950 Jason Tue, 24 Jul 2007 21:30:16 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-8950 I would have never thought of that. Thanks! I would have never thought of that. Thanks!

]]> By: moneygardener http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-8946 moneygardener Tue, 24 Jul 2007 20:20:18 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-8946 I agree with 4Pillars. Personally I use a 2.0% rule. Commission divided by (Cost - Commission) = 2% is the max. I go. I agree with 4Pillars.

Personally I use a 2.0% rule.

Commission divided by (Cost – Commission) = 2% is the max. I go.

]]> By: Adventures In Money Making http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-8932 Adventures In Money Making Tue, 24 Jul 2007 16:36:36 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-8932 In the US, IB charges only $1 for 500 shares or less. In the US, IB charges only $1 for 500 shares or less.

]]> By: nobleea http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm/comment-page-1#comment-8925 nobleea Tue, 24 Jul 2007 15:39:50 +0000 http://www.milliondollarjourney.com/the-1-stock-trading-rule.htm#comment-8925 FT; Shouldn't both buy and sell commissions be included? It's unrealized gain unless you can sell the stock, so the sell commission should be included as well. I don't put a huge emphasis on commissions, though, looking at all my trades, they are under 1% when buy/sell commissions are included. FT;
Shouldn’t both buy and sell commissions be included? It’s unrealized gain unless you can sell the stock, so the sell commission should be included as well.

I don’t put a huge emphasis on commissions, though, looking at all my trades, they are under 1% when buy/sell commissions are included.

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