Early Morning Range Breakouts using time and sales

LO Short -325 @ 115.83
CXO Long 100 @ 101.52
ONXX Long 143 @ 76.92

LO Exit @ 115.38 ( + 45ct/share => $ 145.60 profit)
CXO Exit @ 101.16 ( -36ct/share => $ -36 loss)
ONXX Exit @ 76.78 ( -14ct/share => $ -20.45 loss)

Profit before commissions is $ 88.55

Entry at crosshair, exit at end of chart

Trades 11-05.jpg





I changed my lot size to start trading with very limited capital (ca. $1000). Risking around 2 to 4 percent per trade. It is of no use to start trading with IGMarkets, because their minimum commission structure is already my inital risk ($30 per roundtrip, that's 3% of capital). With IB commissions this can be viable, but they won't let you open an account if you have only $1000 to trade with, their minimum is $10000 and for daytrading you will need $30000.​

Then the alternative is spreadbetting with IGIndex or CityIndex, but then you will need to overcome the spread on a regular basis. The spread differs per stock and time, but is somewhere between 10 and 15ct/share. Thus you will need a move of 10ct in your favor before you get breakeven. It is relativly easy to get 10 or 15 ct out of a stocks daily move, but it is very hard to get 20 or 30 ct out of a move on a regular basis.

To overcome the spread the daily range of the stock must be high enough so you only need a part of the move and not the low and high of the day every trade.​