Reminiscences of a Stock Operator Ch 2 pg 15 at the bottom
"Well, it wasn’t six months before I was broke. I was a pretty active trader and had a sort of reputation as a winner. I guess my commissions amounted to something. I ran up my account quite a little, but, of course, in the end I lost. "
Being a Stock Operator is a business. Hopefully there is an amount of positive earnings with your trades but as with all businesses there are expenses. Losing trades, commissions, charting program subscriptions, data feed expenses, expenses associated with getting faster internet, and expenses associated with any trade services you may belong to. Additionally, expenses with getting something as mundane as the Wall Street Journal or other periodicals shouldn't be over - looked.
As Jesse points out, commissions can really eat into the profitability of an active trader. Most / many of the brokerage houses do a remarkable job hiding these expenses. A while back, Think or Swim sent me a new disclosure notifying me that the P/L shown on the platform did NOT include their commissions. I guess one of their customers didn't appreciate seeing a positive P/L but then figuring out he was actually losing. For an active trader these commissions can be staggering.
Happy Hunting and Good Trading.
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