All right today we're going to be talking about the hidden cost of trading. Um, a lot of people think of like commissions and and and everything. Which is the nice thing is that we've You know we've got to the point where um a lot of you are trading commission free which is nice just to touch on that. like um I know that like maybe you've heard you know other trading gurus and prominent Traders like bash the free Brokers um I actually don't do that like you know these videos I mean obviously you're on the YouTube You come here probably because you're new to trading or maybe just new to day trading.

or you got a small account you're trading part-time and I think like like listen one thing I say and I always joke. This is where people like close the video. but I am a big proponent of the fact that if you're a brand new Trader like you're new to this, your job is not to make money. Okay, your job is not to make money.

Now this is where again people close the webinar. but like seriously like you need to learn how to trade like it's a corny analogy but it'd be like you're you're It's the first month of med school and you're practicing medicine okay, like like and and that's where the the accessibility of trading which we'll talk about it kind of gets people a lot in trouble. Like like no one will stop you from Trading your first month someone will stop you from practicing medicine your first month of med school. Okay and no one would ever try that unless they were crazy which again I think a lot of people are crazy when it comes to trading.

but um, if you don't know how to trade like you don't know what long means, you don't know what short means. You don't know what you know a A a chart pattern is you know what volatile? you don't know what vwap all of these things that you don't know which is fine, you're just getting started. but people will dive feet first in and start trading when they don't even have a basic semblance of knowledge. and like that where that's where I think the free Brokers are great because now you're trading small size which I will tell you to, you're focusing on good trades.

like like focus on percent gains like like This is one thing that I talk about a lot and and people again don't like. Like if you buy a hundred shares of a stock at a dollar and you sell it, you know dollar2. Okay, it's a 20% move. Now it's not.

You know you. you're basically buying a sandwich with that profit. but you made 20% on a trade that you like. Like, let's assume this is something that you really felt good about.

You looked at the process and you looked at the the criteria and you're like I really like this trade and you made 20% in a matter of a minute And you're like And and and you felt good about that trade. That sandwich money isn't going to change your life, but what can happen is the more you do that, the more you have realistic expectations and the more you slowly grow your account. you're now building your knowledge. You're building your confidence too.

Like it feels good to be right about a trade. So now over time maybe it be a month later or two months later. Now you trade a th000 shares. That's 200 bucks.

I Mean again, you're not buying a Lambo with 200 bucks, but you traded the same setup. That's what's cool. Like you could be trading the exact same set, maybe even the same stock. Like sometimes these things come back.

Okay, you could be trading the same stock 2 months later. Now your TW two 20% is 200 bucks. which again not bad for a couple minutes. You know again you're not going to retire.

but that grows, your account builds your confidence. and hey, 200 bucks is 200 bucks. Then overtime, 10,000 chairs, 100,000 chairs if you get there. So that's you know that's why I Never bash the uh, the free Brokers And and when we talk about hidden cost of trading if you're not at a free broker and you have a small account now listen, you got 30 grand, you got 100 Grand You've you have outgrown the small Brokers But don't overlook that.

Like like if you're trading a $1,000 account and you're like man, half my my uh profits are going to commissions jump over to a Robin Hood or a Weeble There's nothing wrong with that I don't get this kind of like uh uh it's almost like a ego thing. like like the bigger Traders Want to bash these Brokers because they're like too cool for school or something. Well listen, you're this big bigname Trader making $3 million a year? Why would you bash something that you know some n 18-year-old is trying to learn from in your footsteps and do what you do. but he's got 800 bucks in his account so check that out if your if your commissions are eating you up.

the other one is uh you know and this one always unpopular but it's just the reality. Taxes. okay um please my friends. and and I've heard horror stories of this.

um if you're profitable right now and you're doing well, um do not forget my friends that you know remember with trading it's not like your W2 it's not like your paycheck. okay and this might seem basic to some of you, but I've heard horror stories okay like you get your paycheck from ABC Inc well they take everything out and then you get the net. Okay, you don't necessarily have to wor worry about estimated taxes or or F or any of these things because the employer takes care of it with your trading problem profs. That does not happen.

If you make $200 you get $200 now. Remember Uncle Sam always gets his piece. All right. So that if you're making good money now or you're you know you're starting to grow your account Like let's say you got 10 grand in profits.

Okay and let's say you're watching this video and it's like you know April 10th and you haven't done your return yet. Okay now you. We'd have to talk profits the previous calendar year, but you're getting one of. But this is what gets people in trouble.

They make a bunch of money. They make like a hundred grand tax. Time comes, they've spent all that money they bought. You know, whatever they gotta, you got to pay that tax on that 100 Grand April 15th And they don't care, they don't They don't care if you spend it, they want it today.

and um, and even this is the other thing. This is what trips up a lot of Traders Like say they make good money this year, then they hit a rough patch the next year and they think well, I can offset null I mean your losses in the current year, that's the next tax year you got to. It doesn't matter if you like, if you made 100 Grand in 20123 and you lost 100 Grand in 2024, they still collect on the 100 Grand Now you can write off this year in ' 05, but you got to go a whole another year. So I hope like, listen I Hope your trading is going very well.

Or maybe you watch this video and you start doing well or you subscribed to the channel and you start crushing it. But just remember that, um, as you come into the end of the year, you got to set those profits aside for your tax bill. Now you can Google tax estimators. There's tools out there you could probably just look at your rate.

uh, you know what your tax at and guesstimate it and maybe offset the rest. But put that money away, you know. put it in a savings account, put it somewhere where you're not trading with it the the tax money. I'm saying because listen, we all know losing streaks happen, dry patches happen.

and if you don't have savings to offset that tax bill, it's not going to be good. Okay, so that's the biggest thing that I want to talk about. and when it comes to like Taxation and writing things off, remember, you actually can write off your trading expenses if you're organized under an LLC I Don't give tax advice here, but there are ways, um, to do that as well. Um, that that you can.

Actually, if you're organized under an LLC you can actually write off your your fees and your expenses and even your education under uh, the LLC. But again, I don't I'm not a CPA I Don't give tax advice, but there are companies that do that. You can Google them they're out there. Um, they're uh, several of them.

you can Google trading LLC and they'll advise you on that. So my friends I don't want to scare you I Hope you're profitable. but the two biggest points today is you don't have to pay crazy commissions and fees. If you have a small account, check out the free Brokers Take advantage of the service that they offer.

hopefully you grow, you get more profitable, and then you move back to a traditional broker. But there's no reason with a small account to be paying a bunch of fees. And then on the flip side, if you're crushing it, remember Uncle Sam always gets his piece and make sure to set that money aside or be paying your estimated tax taxes through the year. So all right my friends, If you want to talk about everything trading related, you know, hopefully you like the channel, give us a like, give us you know, subscribe, Mention it to your friends.

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