Rule #2:
Forget about rule #1
How much is your account size bottleneck?
- Thread starter qll
- Start date
Rule #2:
Forget about rule #1
Quote from wunder:
Come on OP, you know there are some savvy people on ET like me
1 m is no problem, ES is so liquid it ain't funny, Now I hate the ES but if I had a bottleneck in stocks its time to play with us
The Big Boys
What is ES? by the way?
Here is one trade I did this week. I used 100K to buy AUO pre earning and dumped it in pre-market. I pretty much traded 50% of its pre market volume (11K). I bought at 20.7 and sold it at 21. In regular hour after earnings, it almost never traded above 21. Most of the time, it is below my entry point of 20.7. AUO is a liquid stock, but I can only squeeze $1500 out of $100K trade. That is the most I can do. If I bought more shares, I will end up a loss.
Could you talk a little bit more about your trades in details? Like size, timing etc?
either you are very small time, small minded, just stupid or combination (nice thread hijack, btw). it isn't bragging- this IS a trading forum. it's a legit topic. if you think talking about a $1mm acct is bragging, you're in the wrong occupation.
i see it being a factor for me in the futures i prefer to trade once i ramp up the # of contracts. my strategy will run into problems @ around a $1.5-2mm account unless volume grows @ a faster rate.
i imagine the OP has traded a certain type of stock that his portfolio size is outgrowing. he needs to either venture into higher volume stocks where his size is insignificant, but where he might not be as comfortable, or, as has been suggested, cut his acct in half, keep with the tried and true that has worked, rinse and repeat each time the acct gets too large to maintain the strategy (there are worse problems to have!).
You supply the answers yourself. Trade 1mln in the stocks you now trade, trade your excess capital in other stocks or even venture into other markets.
I moved from small caps to large caps pair trading which didn't really suit me and are now doing small caps and something totally unrelated (currency/bond/commodity futures). the latter strategy should easily absorb $50-$100mln so got some room there
ES is a type of futures instrument. The poster recommending the use of ES probably figured that with a 7 figure portfolio and the mention of using futures in your opening post, that you were well versed with ES.
At any rate, you can move into and out of ES quite easily. And if you make a series of terrible mistakes, it is quite forgiving. All you have to do is reset the program. After all...that's the beauty of paper trading!!!