Its not so much the learning path but the crazy-ass language you were using. If anyone on this site, no matter their level of experience, can decipher what u said, I must say I'd be impressed! lol
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Any huge size stock day traders out there?
- Thread starter newguyintown
- Start date
why in the world would you want to down leverage to enter the world of stock trading? Seriously...anyone trading 100-1,000 ES lots need not trade stocks...I'd forget it!!Quote from newguyintown:
Quick question. I'm an ES day trader that trades decent size (up to 100+ lots) and will be trading much bigger size soon (1000+ lots) when I start managing investor money other than my own.
I'm looking to broaden out my scope and expand my repertoire by also day trading stocks, which is something I feel my natural style could gel well with, and also to have a different income stream from pure ES trading when the indices are dead and choppy like they have been so often of late.
My question for any big size stock day traders out there is what are the liquidity and scalability constraints in the world of stock day trading (assuming the most liquid and volatile stocks)?
Trading a 1000 lot in the ES with a 2 point stop means $100,000 of risk in just one trade. While I know that kind of risk is not likely feasible in intraday trading in a given stock, I just want to have an idea of the number of shares one can trade pretty readily intraday in some of the most tradable stocks (like GOOG, APPL and so on) while keeping slippage under control and not eroding ones edge. Specificity and detail would be much appreciated, and keep in mind I am not a scalper. I would be looking to get in for the larger intraday swings.
Of course I know that there would be a learning curve and I would first naturally start out with very small size, but I am asking to know if it could be a lucrative thing to add to my ES trading. If huge size is not really feasible it might not be worth my time and effort to get into the stock trading learning curve.
Thanks.
If you are planning to scale up to 1000 lots you should look into the big contract. I've traded well over 100 lots on the ES and partial fills are common, depending on a variety of factors. I tried 100+ on the TF once -- only once! What a nightmare that was. I was on the wrong side trying to get out at b/e and just about chewed my fingernails to the bone waiting to get hit. If your game is good on the ES I think you should look into the big contract before jumping to equities. You may even find some arbitrage opportunities trading the two but obviously so is everyone else in the your position. Isn't competition grand.
I tried this. It works for about 1 or 2 trades and then the MM or Specialist catches on pretty quick and all of a sudden the gig is up. If the OP tries this it will blow up in his face. Been down this road. It's like an ant trying to pick a fight with an elephant. At first the elephant doesn't even notice he's being picked on but when he does he just squashes the ant. Remember, it's not you against a MM. It's you against an army of MM's.
Quote from hajimow:
If I had a huge account, I would manipulate some small stocks rather than playing big stocks.
Quote from the1:
If you are planning to scale up to 1000 lots you should look into the big contract. I've traded well over 100 lots on the ES and partial fills are common, depending on a variety of factors. I tried 100+ on the TF once -- only once! What a nightmare that was. I was on the wrong side trying to get out at b/e and just about chewed my fingernails to the bone waiting to get hit. If your game is good on the ES I think you should look into the big contract before jumping to equities. You may even find some arbitrage opportunities trading the two but obviously so is everyone else in the your position. Isn't competition grand.
Wow, you are the second person on this short thread to recommend trading the big S&P without a clue that it does no volume.
Jan 13, 2011 Volume
March ES 1,670,930
March SP 11,931
:eek:
Quote from newguyintown:
Thanks for ur insights guys.
Jeb: I trade through Advantage Futures, and I have a seat lease on the CME so my commissions are sub $1.50 round turn.
Thanks for the reply. Advantage Futures is a great clearing firm with aggressive rates for volume traders.
It doesn't correlate well with the ES, but another futures contract that does good volume is the 10 Year Note on the CBOT. On Jan 13, 2011 volume was over 1.2 million contracts.