Changing techniques when going from $100k to $100M

[kongkalikong]

How is it any different? I can understand if there's leverage involved your problems are now potentially much larger, but assuming no to very little (and even then judiciously used) leverage (<1:5), how different would my approach have to be?

By approach I mean buying, selling, etc. I'm guessing one would have to space out their buying and selling instead of clicking "buy" at whatever price they think is appropriate. Or would position building be a pointless exercise for a $2-$8 million position in a blue chip?

Trading equities, currencies, commodities (futures), and indices.

Edit:
In case it isn't clear, this is a hypothetical question. I am not going from 100k to 100M and ask for advice on here before doing so. Curious to know why it's "different" once you're in a much larger bucket, and how so.

 

[southall]

With 100K you can trade a system with tight stops in any market.
eg You can trade NQ or CL or a liquid stock with say a 10 or 25 or 50 tick stop loss.

With 100M that tight stop system is a waste of time. Does not scale. Profits will be paltry compared to AUM.

Mostly likely you would need to Swing trade or do longer term forms of trading.

The point im trying to make is that Swing trading and longer term trading should scale ok to 100M. Day trading with a tight stop probably wont scale, unless you trading the most liquid markets like ES or FESX or ZN.

 

[SillyWilly]

don't listen to this donkey above, first off, trading blue chips with a 100k account is being silly. Blue chips (IBM, GS, SPY, MSFT, AAPL) is liquid enough for a billion dollar fund to move markets only slightly. You have mentioned the most liquid markets and will experience almost no change - if your are profitable trading those markets. However I don't believe you even manage 100k(based on the question) and if you do, wtf are you doing trading the most efficient markets. Much easier money to be made other places. GL

 

[SillyWilly]

but to answer the question, you will experience no change trading AAPL with 100k or 100mm

 

[southall]

but to answer the question, you will experience no change trading AAPL with 100k or 100mm

If you are trading 1000 shares of AAPL for quick profits with a 100K account.
You cant scale that to 100,000 shares without increasing market impact. You would probably move the market 10 or 20 ticks or more depending on time of day. Thats not good for most types of day trading.

Actually the scale factor from 100K to 100M is 1000 fold. So you would have to try and scale from 1000 shares to 1million shares. LOL. Forget about day trading AAPL with 1million clip size. No chance.

 

[SillyWilly]

If you are trading 1000 share AAPL for quick profits with a 100K account.
You cant scale that to 100,000 shares without increasing market impact. Probably move the market 10 or 20 ticks. Thats not good for most types of day trading.

huh? dude if you mange 100m you are not risking more than 5% per trade which is 5 mil and therefore you are not trading over 30k shares at one time.....AAPL trades that amount in 1 minute....... cmon bro you are being rediculous

 

[SillyWilly]

If you are trading 1000 shares of AAPL for quick profits with a 100K account.
You cant scale that to 100,000 shares without increasing market impact. You would probably move the market 10 or 20 ticks or more depending on time of day. Thats not good for most types of day trading.

Actually the scale factor from 100K to 100M is 1000 fold. So you would have to try and scale from 1000 shares to 1million shares. LOL. Forget about day trading AAPL with 1million clip size. No chance.

also day trading 1 mil AAPL shares would not be a problem, AAPL trades 30 mil a day. and you would never be trading 1 mil shares of APPL shares with 100 mil any way. this thread is actually ridiculous to begin with.

 

[southall]

also day trading 1 mil AAPL shares would not be a problem, AAPL trades 30 mil a day.

If only you could scale day trading like that, the day traders on ET would all be managing huge hedge funds.

 

[padutrader]

also day trading 1 mil AAPL shares would not be a problem, AAPL trades 30 mil a day. and you would never be trading 1 mil shares of APPL shares with 100 mil any way. this thread is actually ridiculous to begin with.

was wondering if it trades 30 m then what is the daily range?

 

[Handle123]

Maybe one hedge fund that day trades, but most use dark pools for entering large orders so as not to move the markets. It is possible but...you might be able to day trade close to a billion dollars in a 24 hour clock but it would be countless symbols and not extreme numbers and often. And spread out between futures, options, stocks and ETFs, can't go too large or those above you will give you a trashing, have to be automation of course. Better be owning a brokerage too.

Of course "thinking" something like this can be done is far cry to actually being done.