Tuesday, February 9, 2010

Tuesday Notes - Video Follow-Up

Tonight I take a break from the keyboard and use the camera to follow up on Sunday's post addressing trader commissions, as well as expand on a portion of yesterday's piece on trader education.

A reminder that we'll again continue with the Livestream TV interactive chat here tomorrow at 4:30pm ET.  Just refresh the browser around 4:15pm ET and view in HD.  You can also view at the On-Demand site which will be playing a pre-recorded video until air time.

And I promise not to screw up the recording this time for those who can't make it.


beantown trader said...


Just a suggestion for a topic in tomorrow's webinar, taxes related to trading. I can understand how you emphasized horrible commission rates were eating into your profits at the beginning of your trading career, and was wondering how you experience is with taxes.

I know taxes can get very involved when it comes to trading, but from first hand experience being a day trader with capital gains truly eats into profits significantly. I feel much more than commissions.

I have heard from other experienced traders that setting up one's own LLC or Sole proprietorship are the best options when he/she is day trading, but what is your take on it?

Rich Harris said...


I am a SPY trader and looking to change to ES. I am in my learning and investigation phase now. I am trying to determine the best trading platform and what is a reasonable commission to pay. I intend to open a $50k account and expect to trade 5-10 contracts at a time with 5-7 roundtrips per day.

I realize that you may not want to throw names out there so as to recommend one platform or broker over another but if you can point me in the right direction so that I don't screw this up that would be great help.

Thanks for your blog. I wish I could make today's live video but I have non-market commitments today.

Frank said...

Hey Don,

Question about CME lease/membership. Once you fill out the app and get approved for membership and start leasing a seat what happens if you take some time off from trading and then start again? Do you lose your membership if you take an extended period off from leasing?


Airelon said...

I'm more of a swing trader, heck I don't think I trade 10 contracts in 3 to 4 days. I think as high as I have ever been, is maybe 15 contracts in a week. But I'm not a pick / scratch trader either.

And at the same time, since I've sort of got to this point in my life - where I just trade 'part time', as it were. If I want to take three or four days off - I do. So I just can't see the option of a lease really making much sense in my situation.

But I do agree that the CME lease is something that needs more discussion. Especially for day traders. I honestly can't think of anyone else that has even brought it up.