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how bad can 25% margins be? even by fortune 500 ceo standards?
-----Original Message-----
From: Dennis Holverstott <dennis@xxxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Date: Tuesday, February 23, 1999 12:10 AM
Subject: Re: S&P Daytrading - 1000 Trade Review Q&A (long post)
:Well, maybe. Trading is a business. Even at current levels, your friend
:is spending 75% of his gross income on commission expenses. If his
:'edge' on the market (read skill or luck or whatever) slips only 25%, he
:is breaking even. Any more than 25% and he is losing money big time.
:
:Contrast that to someone who spends 10% of his gross on commissions and
:other expenses. His edge would have to slip 90% before he started losing
:money.
:
:In any business, reducing expenses is just as important as increasing
:gross revenues. Maybe more important if it is the sort of business that
:has good times and bad times. Gotta survive the bad times so you are
:still in business when the good times come back. Ask any Fortune 500
:CEO.
:
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: Dennis
:
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