Re:Amazon Reports First Quarterly Loss in 4 Years
by Retric on Thursday October 25, 2012 @07:31PM
(#4700116)
You might want to consider buying 2000$ every 4 weeks depending on your transaction fees.
[ Parent
| on HN ]
Re:Amazon Reports First Quarterly Loss in 4 Years
by MichaelApproved on Friday October 26, 2012 @03:38AM
(#4701242)
$2,000 is better but even that's rough. Consider you have $7 commission. With each $1,000 purchase, you have to earn 0.70% just to earn back that $7. If you sell that $1,000 purchase, it'll cost another 0.70%, totaling 1.4% in fees.
Based on your strategy you're probably incrementally purchasing and the selling in bulk so the sell commission isn't as damaging but losing 0.70% of an investment right off the bat makes it hard to be profitable. Even half that amount, if you increase your lots to $2,000, is painful.