I'm trying to better understand the cost of trading other than the obvious stuff like ER.
My understanding is times like right now with very little volatility the bid to ask spread is negligible and ER is more important. But when volatility increases you can loose more in a handful of trades due to liquidity than the lower ER is worth? Am I understanding this correctly?
What would that breakover point be? Once the bid/ask spread widens to a certain degree that ER no longer matters? Is it a metric that I can track or should I simply say "regardless of current or future volatility, I'm making a dozen trades this year so SPY is better for me than VOO"?
I don't know if I'm framing this question correctly.
Submitted July 05, 2024 at 12:53AM by _le_slap https://ift.tt/sXr7mq5
