Quote from Grob109:
I read the thread.
With respect to making money in equities, I use the following general limits for the reasons indicated.
The share limit you mention is true for me. I NEVER trade in one capital stream more then 100,000 shares (think 10 to 30 dollar range). Why?
Liquidity is the reason. My rules come down to never trading in a day more than 10% of the cummulative volume of that day.
My rule for entry and exit is to use blocks the size that are being traded. I use the high end of the block size. A typical 100,000 share entry requires about 20 actions to accumulate the 100,000 shares and the duration required to do this is the amount of time it takes for 1,000,000 cummulative shares traded that day starting ONLY after the stock has traded an amount of shares equal to the LOWEST amount of shares traded a series of days when the stock consistently keeps at that total days trading LOWEST volume.
The # of blocks going in is about 20 and the # of blocks going out is about 30.
I have posted an example of this where a third party observed prints at the request of a B person. The rough info was average in @ 11 average out @ 28 on the 100,000 shares in that particular stream of capital. A biotech corp.
The general nature of trading is position trading and the hold is in the 6 to 8 day range and the net is about half of the H/L range ( I target (not predict but expect based on 5 prior consecutive moves within 6 months).
Obviously this is anything but rocket science.
