Buying too many shares is a problem????

K

kapama

I have this software that is telling me what to buy and sell and lately I have been investing alot more than I used to. The other day, I did not realize that I was buying 20,000 shares of a stock that has average daily volume of 100,000.

I am not trying to manipulate the market or anything I am just following what the software is telling me. Do you guys think this will cause an investigation or something? At the end of the day, I am not a day trader I Am just trading once a week.

What do you guys think? Is there an SEC rule on this?
 
Personally, I'd be more worried about getting faded, with the other side knowing you're a retail trader.

Then again, Dan Zanger said he owned something like 10% of TZOO at one time, and he did pretty well.
 
your fine. you are acquiring risk and are subject to the downfalls of it, no gaming. there is nothing that is guaranteeing you a risk free return when you are a large trader for a day by volume.
 
"When a person or group of persons acquires beneficial ownership of more than 5%
of a class of a company’s equity securities registered under Section 12 of the Securities
Exchange Act of 1934, they must file a Schedule 13D with the SEC."
SEC Schedule 13D
 
Quote from mekas:

"When a person or group of persons acquires beneficial ownership of more than 5%
of a class of a company’s equity securities registered under Section 12 of the Securities
Exchange Act of 1934, they must file a Schedule 13D with the SEC."
SEC Schedule 13D
More...

If 20k shares is close to 5% of the companies outstanding shares then its not listed on any exchange that the SEC cares about.
 
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