The Hidden Cost of Trading

JOIN US LIVE @ Noon PT / 3pm ET ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! LIVE TRADING SESSION!]( Hello investor I am going to reveal something unique about trading that you may not have heard before. Professional traders always think about costs. Especially spread costs. There’s bid/ask spread for every stock. Bid price is the price that buyers would buy from you. Ask price, on the other hand, is the price that sellers would be willing to sell. What does it mean? Let’s look at MetroCity Bankshares. It has an ask price of $20.81. Imagine that you decided to buy shares in this bank. So, you’re likely to receive shares at $20.81 since that’s the price that sellers are offering. That’s fine. Then let’s pretend that you wanted to sell shares immediately after you bought it. What happens? You’re likely to sell it at the bid price. As of Thursday, it was $20.28. You’re likely to sell at that price because it’s what buyers are willing to pay. Meaning? You’ve lost 2.5% purely from spread costs! That is something that most retail traders don’t realize. They are already down by 2.5% the minute they bought a stock. How can you trade better without taking a huge loss in spread costs? Let’s say that the trader believes that the financial sector is due to move up due to better-than-expected earnings. So, he thinks most banking stocks could move up – including MetroCity Bankshares. So, he buys a popular banking ETF called Financial Select Sector SPDR Fund ($XLF). Because this ETF is much more popular, the spread is tighter. Based on Thursday, its spread is the following: - Bid: $35.78 - Ask: $35.80 The trader would incur only 0.05% in spread costs. Isn’t it more appealing than taking a 2.5% spread cost if he chose to trade MetroCity Bankshares? Here’s the bottom line: Always understand what you’re betting on. If you believe the financial sector is due to move up, consider spread costs and choose the ETF that has the lowest spread cost. After all, you don’t want to be down by 2.5% the minute you buy MetroCity Bankshares. This is something that a financial “guru” on YouTube doesn’t tell you. But TradeAlgo will. I am going LIVE soon to reveal several more trading tips that you may be unaware of. And I will also share top trades that I am loading up on. It is going to be jam-packed with “killer” trading info. Come and join me at 12pm PT / 3pm ET. Click below to register: [JOIN US LIVE @ Noon PT / 3pm ET]( * We will attempt to trade in a paper-trading account – not with a real portfolio. No returns are guaranteed. No longer want to receive these emails? [Unsubscribe](. Trade Algo 401 Park Ave S New York, NY 10016, NY 10016