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Hi guys,
Yesterday i saw my transaction cost throughout the years is quite significant, then i start counting my trades. Here is my no of trades for the past 5 years.
2006 - 5 trades (2 buys, 3 sells)
2007 - 6 trades (2 buys, 4 sells)
2008 - 20 trades (18 buys, 2 sells)
2009 - 26 trades (22 buys, 4 sells)
2010 - 20 trades (16 buys, 4 sells)
Do i considered trade a lot compared to other forummers? I used to buy several times on the same counter just in case i can average down. Then when i sell, i sell it all at 1 time. Do you do the same?
Do you mind sharing yours? Thanks.
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Generally, about 3 to 4 transactions per year (or less). Unless, of course, I am collecting an illiquid counter, then it may take a few transactions to collect in sufficient quantities.
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Tats a not a lot to be honest.........but still way more than me.........
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I think it will be more appropriate to calculate in transacton cost incurred in trading.
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for value investment, transaction cost should not be a concern.
your profit will be far more than the few hundred dollar of transaction cost.
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I make around 60 trades in 2009, around 10 trades in 1H 2010....and that's about it..
So transaction cost is the least of my worries ...though i get charged a min. of $256 per transaction.
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(25-02-2011, 06:49 PM)Musicwhiz Wrote: Generally, about 3 to 4 transactions per year (or less). Unless, of course, I am collecting an illiquid counter, then it may take a few transactions to collect in sufficient quantities. Seem like you get all your lots at single price. This one involves capital allocation too, for example say i want to spend $1000, if i spend all at 1 price, if it keep dropping i keep average down, end up i might spend $2000, more than the best stock in my portfolio. Don't ask me not to average down, it simply can't be done :p
(26-02-2011, 06:41 PM)freedom Wrote: for value investment, transaction cost should not be a concern.
your profit will be far more than the few hundred dollar of transaction cost. Actually i am more interested in the no of trades than the transaction cost, since everyone here is practicing value investment, so i can find out what is the average no of trade that is not too excessive.
(26-02-2011, 07:15 PM)wj888 Wrote: I make around 60 trades in 2009, around 10 trades in 1H 2010....and that's about it..
So transaction cost is the least of my worries ...though i get charged a min. of $256 per transaction. Wow, do you buy and exit often? If you are just buying, you must have multi millions to hold all 60 transactions which costing $256 commission each.
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26-02-2011, 08:41 PM
(This post was last modified: 26-02-2011, 08:48 PM by corydorus.)
27 trades within the first 2 months of the 2011. <= (I am not Day Trader! Just doing something funny for this 2 weeks down swing)
65 trades in 2010.
69 trades in 2009.
Assume S$70/Trade total 4K+ for each of previous years. I do not think the cost is excessive for being nimble and splitting out buy/sell.
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market has its cycles. tough to just buy in one or two batches, that's it.
for a good GEM, I could buy as many as 10 or 15 times spreading in years.
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Hi Hongonn,
I guess for me, there is no such thing as "excessive" in the sense that when I see good valuations and a price which (to me) guarantees margin of safety, and if I have sufficient spare funds, I will choose to allocate them by purchasing. If the share price provides opportunities over a number of days/weeks, then I will still choose to selectively add to my position. Ultimately, if I cannot buy all at one shot (and one price), I will stagger if over a number of days.
To give an example, I purchased Boustead in 2006, then 2008 and once again in 2009. For Kingsmen, I made purchases in Jan 2010 and then again in May 2010; MTQ was completed in 5 purchases and for SIAEC I made purchases on 3 days in total to get the stake I wanted. So it really depends on whether I hit the quantity of shares I wish to own. If not, I will continue to purchase as long as I get a fair price.
Hi freedom,
I concur with you on transaction costs. In value investing, we go for rewards which are much, much bigger than transaction costs. 
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