Your Trading Strategy Isn’t Broken — Trading Costs Are Killing It
Your Trading Strategy Isn’t Broken — Your Trading Costs Are Killing It Most traders assume that when their account is not growing, the problem must be their strategy. Maybe the entry is wrong. Maybe the stop loss is too tight. Maybe the win rate is too low. Maybe they need another indicator, another trading system, or another YouTube strategy. But there is one problem that many active traders barely calculate. Trading costs. For swing traders who only place a few trades each month, commissions and spreads may not feel significant. But for futures, forex, gold, NASDAQ, and CFD traders who enter and exit the market repeatedly, transaction costs can become one of the biggest drags on performance. A strategy can actually be profitable before costs and still lose money after costs. That is the part many traders underestimate. Today, we are going to look at why trading costs matter more than most traders think, why overtrading can silently destroy a profitable system, and why active traders ...