How much size is too much?

I daytrade stocks, and my universe are only those tickers with $50m daily liquidity.

My trading size is only $100k or so but I always buy on open.

I figure as long as there is more than $2mil opening liquidity then my $100k should be okay.

Of course these are just approximations.
 
Quote from nazzdack:

1) Try not to be distracted by something that may never happen nor be a legitimate concern.
2) There can be an advantage in trading larger size that "moves the market your way". :cool:
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Haha, I'm not too distracted by the topic... That said, I've had several authentic fund raising folks tell me they're not interested in the fund unless my capacity is up to $1 bb (currently just $3mm).
 
Quote from heech:
----Haha....
----they're not interested in the fund unless my capacity is up to $1 bb (currently just $3mm).
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No matter your size, you're never big enough for them? :eek: :(
 
Quote from heech:

Any rough metrics out there, as to when our size might get too large for a market, and fills are seriously affected?

Right now Im a goldfish, trading 0.01% of daily volume. Could I eventually put on trades that are roughly 2-5%, 10%, 20% of average daily volume all in the same direction, but spread out through out course of day... Without moving market too much?

I'm thinking of very liquid futures... Corn, nat gas, interest rates, etc.
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You don't need more than 6 inches.

What's six inches long, two inches wide, and drives women wild? Money.

The other day the wife said to him: "Honey, give me 12 inches and make it hurt," so he fcked her twice and hit her in the back of the head with a brick.
 
Quote from deadbroke:

You don't need more than 6 inches.

What's six inches long, two inches wide, and drives women wild? Money.

The other day the wife said to him: "Honey, give me 12 inches and make it hurt," so he fcked her twice and hit her in the back of the head with a brick.
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LOL
 
Quote from NetTecture:

You focus a lot too much IMHO on daily volume. What is more important for you is order book. Given a specific slip allowance (00, 1 or 2 ticks) - how much volume do you have a significant chance (95%) to fill. With more acceptable slippage this gets bigger.

Basically, daily volume is irrelevant - you want to get in and out without slippage, and that is waht you need to watch, which requires order book analysis.
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Very insightful ....and wise analysis. Thanks NetTecture
 
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