the size issue

D

darkhorse

don't get the wrong idea w/that thread title...:D


just curious as to some of u guys opinion on the max number of shares per trade your method could handle before you started seeing a size related deterioration in performance (hypothetical/guess is fine, unless of course u are already there...)
 
You can increase your size much easier trading the S&P and Nasdaq E-minis than trying to increase your size trading stocks
 
i forgot all about this old post, interesting that no one touched it until now

index observation is true but essentially irrelevant if your method is based on pinpointing pure play volatility and high probability setups found within individual stocks rather than gaming the broader market
 
don't get the wrong idea w/that thread title...

Too late! The chicks all say it don't matter, but we know it does.

Ohwaitaminute... trading size. Yeah, it matters their too.

I guess you could say, don't trade like you're hung like a horse when your capital size is more of a gelding's.

-Joe
 
Originally posted by advancedfutures
You can increase your size much easier trading the S&P and Nasdaq E-minis than trying to increase your size trading stocks
More...


This guy has a good point though...you're gonna feel a hell of
of lot less pressure trading a 100 S&Ps, as opposed to a
100,000 shares of stock.
 
The question is related to maximum size the market can take, not money management issues or stress issues. A liquidity issue basically. Was wondering if other traders here have ever run into it or brushed up against it.

There is a certain maximum utility point beyond which your short term entries and exits will start causing unsustainable slippage, i.e. trying to slip in and out of a stock where you are making five or ten percent of the volume with your own trades just wouldn't work.
 
Originally posted by Breakout



This guy has a good point though...you're gonna feel a hell of
of lot less pressure trading a 100 S&Ps, as opposed to a
100,000 shares of stock.
More...



lol this is a direct quote from Marty Schwartz, is he one of your heroes too? :D

actually i take that back, he said the reverse i believe, that he 'feels a hell of a lot less pressure w/ 100K shares of stock'
 
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