How much stock can be bought in a day?

M

magicaldragon

If the average daily volume is 300,000 shares, how much stock do you think could be bought in a day? Is a limit order best, or is there a better way?

Thank you
 
Quote from MohdSalleh:

what do u mean man???


for daytrading, i would be extremely nervous when i transact more than 10% of a small cap stock
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You mean you have internet service in your cave?
Seen your buddy bin Laden lately?
 
Thank you MohdSalleh,

To be more clear, I want to buy stocks and sell them a month later.

I developed a trading strategy that works on a small scale, and a potental investor wants to know how high I could scale my program up to. If I have 10 stocks with volume of 300,000 each at $20 a share and buy 10% of the daily volume, it looks like I could scale up to 6mm.

Thank you, I've never traded in large volume.
 
Quote from magicaldragon:

Thank you MohdSalleh,

To be more clear, I want to buy stocks and sell them a month later.

I developed a trading strategy that works on a small scale, and a potental investor wants to know how high I could scale my program up to. If I have 10 stocks with volume of 300,000 each at $20 a share and buy 10% of the daily volume, it looks like I could scale up to 6mm.

Thank you, I've never traded in large volume.
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if you put a limit order out there for 10% of the daily volume, you'd be shooting yourself in the foot. Everyone would front run you like it was cool. Iceberg order probably wouldn't be a good strategy either. Talk with your broker, gonna have to break it up.
 
Quote from magicaldragon:

If the average daily volume is 300,000 shares, how much stock do you think could be bought in a day? Is a limit order best, or is there a better way?

Thank you
More...

It depends on the stock and the day, but you can easily do 10% without market impact and sometimes you can do 50% or more. A limit order is one way, but you would definitely need to break it up, as mentioned previously, you could also use algos, such as VWAP, or on a discretionary basis, which can produce good results as well.
 
Thank you MTE and Circadian,

I'll stay away from icebergs (unlike the Titanic), and I've been researching VWAP and algos. They look like the best for my situation,

Magical Dragon
 
Day trading is more a strategy where an investor buys and sells based on short-term fundamentals and technical indicators with no intention of holding longer-term. While you have no obligation to sell a stock the same day it is bought keep in mind that if you are using day trading as a strategy then it is a violation of the strategy to hold a losing trade; particularly where a stock has gone down significantly in a day.

broker comparison
 
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