Live: Friday, Oct. 4, 2019

11 a.m. New York time

Commission-free trading

Yesterday, the brokerage TD Ameritrade went to commission-free trading of stocks and ETFs. On Monday, E*Trade is doing the same. No-commission trading was first launched by the crowd-funded start-up Robinhood in 2013. TD Ameritrade and E*Trade, finally catching up, are the big brokerages, with lots of amenities and customers.

What it means for my money management is that there is no longer a divide between current cash and investments. I can stay fully invested in shares or ETFs, earning money, and pulling it out for cash when needed, at no cost.

Moreover, it removes the last incentive for buy-and-hold trading. It costs nothing to enter a position, and nothing to get out. There’s no longer a cost to trading short-term trends. So, buy today to capture an expected rise, exit tomorrow with a small profit in hand, and move on to the next opportunity.

This creates a whole new world for managing our money. Way exciting.

Traveling abroad

I leave Monday for a trip to visit family in Japan. The U.S. markets open at 10:30 p.m. Japan Standard Time and close at 4 a.m. JST. Since I’m a morning person, this presents some difficulties in trading. For much of October my posts will be made at night U.S. time, after the markets close.

By Tim Bovee, Portland, Oregon, October 4, 2019


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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