Trade Profitably

Trading stocks has a high overhead cost due to the commission and fees that brokers charge per transaction. This is something that, unfortunately, cannot be completely avoided and as a result, many successful traders fall victim to slippage. This occurs when the price of fulfilling a transaction outweighs the actual profit made.

There are ways around this, however. You don’t need to go to a discount broker and utilize their cheap auto-investing options, either. There are many brokers out there that charge a lesser amount of fees for real-time trades. One of the more popular methods of trading at a low cost is to purchase an ETF basket fund using the Straddle Trader Pro, or a pre-mixed portfolio. ETFs are quite popular because they combine several like companies and investments so that you can get a small snapshot of a sector of the market.

A pre-mixed portfolio is slightly different. In this type of investment, you are not necessarily purchasing like-minded stocks, but rather they are just a group of stocks, related or not. The main function of these portfolios is to diversify your portfolio—and as such, some offer up to 100 different stocks. In many cases, these are processed twice per day. This is a much better answer to cheap trading than by going through an automatic investing process that is only updated once per week. Although not an ideal choice, they offer position traders a cheaper method by which to diversify their portfolio. This is something that will act more as a cautionary measure than a solution to trading.