I have been using the Robinhood platform for my trades since there is no fee for a trade. I'd like to switch to something a little more feature rich but I just can't figure out how you all pay the trading fees without always being in the red (aside from investing huge chunks of money at a time). Note. While I plain to have long term ETFs and MFs in my portfolio for diversification I also want to take an active role in my investments, do my research, find stocks that have a catalyst and make some swing trades. This seems like a more profitable approach (albeit more risky of course) and more interesting from my perspective of being involved in the process and constantly learning new things.
For example if I were to invest $100 and get a 10% return on that investment which would make be very happy as I could reinvest that and grow it. However if I'm not misunderstanding Ameritrade would have charged me $7 to buy and another $7 to sell so my net profits after fees would be $(4) leaving me in the red after making a 10% return on my investment.
Even if I were to save longer and start by investing $500 instead of $100 I'd be in the green but still losing a staggering 20% of my profits to fees and would have had to take 5 times the risk for that. I'd also lose any ability to have diversity in my portfolio because I'd always have to use my entire portfolio for a single trade to have enough money to stand to make a large enough profit to offset the fees.
How are you making large enough profits to negate the cost of fees? Are you all rich and only do trades in excess of like a thousand dollars or something?