Tips for Following Traders Online:

Do not follow individuals that trade like fools. What we see a lot on several of the online portfolio investment community websites is the following:

Let’s take two examples of traders we have observed;

Average trades 148/Month:

An average commission would be $10.00. So: 148 * 10 = $1,480.00. 12 months in a year: 12 * $1,480 = $17,760.00.

Oh sweet god! No, your eyes are not buggy, that is close to Eighteen thousand dollars. Tell me these fools are making a profit?

Here is another trader we have observed:

380 trades/month: (380 * $10) * 12 = $45,600.00. Approx. Forty-six thousand dollars in commissions.

Plus we have not even touched upon the short-term capital gains taxes on these so-called trades.

In a nutshell, this type of BS is totally unrealistic (unless of course you work for an investment bank, which I would assume you do not).

Just for giggles let’s half the commission: (380 * $5) * 12 = $22,800.00

= Ridiculous!