what size can be day traded?
- Thread starter chipper
- Start date
depends on your timeframe and the stocks you trade but basically there's no problem playing millions in the high volume blue chips.
Without going into specifics ie limits, your fill can be complete in seconds. But you need to be clever in where and when and make sure your position is less than 10% of a very low daily volume over the last six months.
Without going into specifics ie limits, your fill can be complete in seconds. But you need to be clever in where and when and make sure your position is less than 10% of a very low daily volume over the last six months.
It is not the size of your account that counts. It is the size of your balls.
there are loads of stocks you can sink $20m into in seconds when the market is busy. Forget MM/stop hunters - get your trades right.
If you are wrong it's not the MM or stop hitters - it's you. If it was a low liquidity stock you might have to watch the axe, but in big liquidity just get the direction correct.
There are no excuses.
And yes the MM will see any block trade and know who it comes from, just don't read too much into that. LevII games are few and far between.
If you are wrong it's not the MM or stop hitters - it's you. If it was a low liquidity stock you might have to watch the axe, but in big liquidity just get the direction correct.
There are no excuses.
And yes the MM will see any block trade and know who it comes from, just don't read too much into that. LevII games are few and far between.
Very little to do with actual dollars involved, more a matter of shares and the individual stock liquidity. Virtually all the stocks we trade you can go with 2,000 shares ($15 or $80 stock price, doesn't really matter). With GE and others like it, 8,000 is not a problem.
FWIW,
Don
FWIW,
Don
You can work this out for yourself very easily. My suggestion is look at the daily volume over the last 6 months and don't exceed 10% of the lowest daily volume over that period. That should keep you safe as far as liquidity is concerned.
The bigger the volume the faster the fill. If you push it you'll find it can take hours to work your trade. The $ amount you want to trade divided by the price tells you how much you can buy within this liquidity rule of thumb.
From what you ask, you'd be much better to talk to Don about a trading arrangement; I'm sure he'd have various options for you. I think on your own you'd be a lamb to the slaughter.
The bigger the volume the faster the fill. If you push it you'll find it can take hours to work your trade. The $ amount you want to trade divided by the price tells you how much you can buy within this liquidity rule of thumb.
From what you ask, you'd be much better to talk to Don about a trading arrangement; I'm sure he'd have various options for you. I think on your own you'd be a lamb to the slaughter.