Selling Stocks in Small Lots: Commissions Eat Profits

Daily trading profits vanish when commissions are counted

Three FCC shares sold for €42, recorded by the author as profit-income. An architect with crisis-hit income defends this investment strategy, claiming three years of daily market earnings: buy at support, sell partial lots on rises, rotate portfolio after 3-4 sales. The concept, called playing the girl, promises 3% to 5% monthly while Spanish stocks rise.

The Method: Buy at Support, Sell in Partial Lots

Three requirements: bullish market, cheap price vs recent weeks, no bad news like capital increases. Sales aren't executed all at once: small packages are liquidated, rest held until 3-4 exits complete. Then everything is sold and new values sought.

Risk criteria underpin this rotation. Staying too long in one value multiplies exposure and complicates capital recovery, as each partial sale leaves fewer shares to rebound. Usual values include banks —Sabadell, BBVA— and defensive stocks like DIA, Ebro, Acerinox. Market reference: IBEX around 11,100/11,200 points.

Accounting That Turns Losses Into Gains

Here lies the problem. Money arriving isn't operation profit: purchase and sale commissions must be subtracted. Critics' recount concludes opposite to author's claim. "Worldwide, profit is revenue minus costs; you ignore commission and selling costs. Thus it's not profit," summarizes an objection.

Arithmetic hurts. Against declared +€119, reconstruction shows −€82, assuming most favorable missing data. Another review on a €6,028 portfolio with 2,580 shares at €2.335 places accumulated losses at €10.72 vs initial investment. Full breakdown leaves no easy exit.

How Much Do Fees Eat When Selling €45 in Stocks?

Partial liquidation drags fixed costs that don't dilute with small sales. Example: liquidating €45 paying €6 plus exchange fees makes operation negative before starting. Spanish bank broker tariffs: €5 up to €2,000, €10 between €2,000-€20,000, €10 plus 0.25% above, no exchange fees.

With these figures, a tenth of euro per share evaporates. Another calculation reduces BBVA position result (2,296 shares): real gain was €32.52, not announced €46.8, excluding custody/exchange fees. Conclusion: system doesn't protect profitability, it destroys it.

The Day His Vvife Got Trapped in FCC

Domestic case illustrates method defense. Two people buy same FCC package at same price. One sells twice, closing with 3.21% profit in 24 hours, full capital returned. Other waits for single sale at €16.80 expecting more, gets stuck when value turns.

Central argument for partial exits: seek maximum safety, not return; few days in market reduce unforeseen exposure. Other days record FCC sales of 3, 192, rest of position, BBVA exit with €52 after fees, package leaving €79, Sabadell closed at €2.555 with €6 loss. Liquidity claimed as tool to rebuy if market falls.

Underlying Doubt: System or Casino With Longer-Lasting Chips?

Hardest critique disputes premise, not numbers. "That's not a system, it's a way for chips to last longer in casino," skeptics warn, cautioning novices might replicate money-losing operations benefiting intermediaries. Response: method isn't original, used by savers with larger amounts, works in sustained bull markets.

Annualized arithmetic doesn't help: if 3.1% daily multiplied by 365 days yields 1,131.5%, absurd number showing danger of extrapolating daily returns. Some admit trading isn't simple; rule-based systems stop working when market changes sign.

Author declares +€119. Recalculation gives −€82. With both figures, debate continues between convinced practitioners and readers seeing only commissions.