lets talk about $

[coolweb]

Quote from Steve Tvardek:

Remember to account for the occasional news story that wasnt planned for when the stock gaps against you 5 or so points when you'll take a 10k, 20k or ever 30k loss. Thats the risk of overnights.

Unlikely.


The price actions I do trade never gaps down because there will never be a <b>reason for them</b> to.

Holding biotech will be a different story though.

If Taking a black swan $30k lost in one day happens,
it will not effect my capital because it will be made back and a shit bag will be fedexed to the companys office.

 

[coolweb]

Steve,
I reviewed your concern over liquidity for the past 2 weeks because I started seeing that problem as well.

I fully understood what you were talking about.

I even went out to get that useless level 2 and openbook shit to watch liquidty.

I would say the key to working up to 3-5-10k share lots will correlate directly with how much volume is trading each bar and what the futures are doing if bids get pulled.

First in first out.

That is why big pull days only comes, when there is opportunity for it .


There would be no opportunity on a stock when there is no exit.

 

[Steve Tvardek]

Of course its unlikely, but it does happen. Just becaue the price action says one thing, an UNEXPECTED event can change things dramatically (like a Sept 11th, or company fraud etc). Even huge traders take giant hits sometimes, its part of the game.


Will you be posting all your trades this year?

Quote from coolweb:

Unlikely.


The price actions I do trade never gaps down because there will never be a <b>reason for them</b> to.

Holding biotech will be a different story though.

If Taking a black swan $30k lost in one day happens,
it will not effect my capital because it will be made back and a shit bag will be fedexed to the companys office.

 

[Steve Tvardek]

Yes, liquidity is a major component of the game. Some of my quick stocks I know will move something like 40-75 cents very shortly but I cant take more than 1000-2000 shares because the liquidity isnt there to get reasonable prices but also to get out on if I am wrong.

I, too, am risk averse but I understand that taking hits is part of the game and I take 20 cents+ hits everyday. I manage my risk incredible well too. This is the only reason why I am telling you that 20k shares with a penny stop isnt likely to happen too often.

Quote from coolweb:

Steve,
I reviewed your concern over liquidity for the past 2 weeks because I started seeing that problem as well.

I fully understood what you were talking about.

I even went out to get that useless level 2 and openbook shit to watch liquidty.

I would say the key to working up to 3-5-10k share lots will correlate directly with how much volume is trading each bar and what the futures are doing if bids get pulled.

First in first out.

That is why big pull days only comes, when there is opportunity for it .


There would be no opportunity on a stock when there is no exit.