Chat With Traders 039: Tom Dante – Speaks to the Competitiveness of Trading and Essential Skill Sets for Profitability
23 snips
Sep 24, 2015 AI Snips
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How Commissions Blew Up Tom's Early Account
- Tom started with a £500 stock account and paid £15 to enter and £15 to exit, meaning round-trip commission was ~6% of capital.
- That structure forced stocks to rise ~6% just to break even and made consistent profitability nearly impossible during a bear market.
Making Fast Money From Broker Pricing Errors
- Tom exploited latency and pricing errors across multiple broker platforms by opening many accounts with bonus funds and watching one feed lead another.
- He would hit the slower broker after the faster one moved, making large instant profits until brokers fixed the pricing mismatches.
Avoid Moving Stops To Create 'Free Trades'
- Don't move stops to break even automatically; moving to break even often hands profits back when price returns to support/resistance.
- Trade the market structure instead of the P&L and keep your original plan unless the market invalidates it.