08-17-2013, 01:31 PM
(08-17-2013, 01:17 PM)EricL Wrote: I can understand your feelings on wanting to wait until $2000 to keep your transaction costs down, but at $9 per trade, you would be paying just 0.9% on a $1000 purchase. At a nearly 2.9% yield on KO, you would make up nearly all of that transaction cost with your first quarterly dividend, not to mention if you think the stock is an attractive price right now the daily fluctuations are often more than 1%.
I agree that frequent trading can add up quickly on transaction costs, but as long as your aren't selling in and out of positions and doubling your costs, I think $9 on a $1000 transaction is pretty reasonable.
Well, said, Eric.