Not sure how to ask this question exactly, but hope it comes out right. May not work or even come across the way I’m thinking here, but throwing it out there. I don’t think I will even hit high amounts, but just something I’m wondering.

For day/swing traders….what is the highest amount you feel comfortable buying of one stock in such a short period that you feel comfortable knowing you will be able to sell it all off with such a quick turnaround? Is there a standard thought or a ratio depending on the stock price? A reporting flag if you do?

I’m just wondering if there is an amount you felt/found that you buy in the morning, but feel that you can’t sell off by closing at the amount you were shooting for. Do you separate the shares you are selling to try to avoid not getting some of it sold at the amount you wanted?

I assume the stock matters and the amounts. Like buying $25/50/100k of a $100+/stock could be different than if it were a $5-10/stock.

I guess I’m trying to gauge if there are many issues or concerns with being able to sell off all you bought in the morning by EOD, and if it has much to do with share and/or price amounts.

I’m just a newb trying to figure out how to get into trading, and questions to learn come into my head randomly. TIA

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Posted by thatguy777

Member since Feb 2007

2496 posts

Posted on 7/9/24 at 12:38 pm to HagaDaga

The price of the stock does not matter. It is how liquid the stock is and if you are selling at market or limit. One could sell $20 mil of apple stock in a matter of seconds. If you are talking about some penny stock that trades 70k shares a day you could have trouble selling 10k of stock in a day. Its all about liquidity and volume.

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Posted by HagaDaga

Member since Oct 2020

3477 posts

Posted on 7/9/24 at 1:15 pm to thatguy777

quote:
Its all about liquidity and volume.

Ok...cool. Thanks. That helps and makes sense, and what I was trying to figure out oh to determine. I get the difference between a penny stock and an APPL on volume, but how best do I gauge a regular stock (ie a 15-30/share stock). I know that the stock info page has Volume mentioned, but what do I look at for liquidity? Is there a good amount of each that says that its nothing to worry about? I'm sure its hard to say, but just a "rule of thumb" kind of gauge to work with.

Thanks again.

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Posted by thatguy777

Member since Feb 2007

2496 posts

Posted on 7/9/24 at 1:38 pm to HagaDaga

The bid/ask spread is usually a good indication of liquidity. But just think for example the stock is a $20 stock and 1k shares trade on an average daily basis, then that's $20k worth of stock that traded that day. If you have $20k of that stock it may take you a while to sell or you will be selling the stock for a lot less than $20. Just things you need to look at, but any stock in the s&p or nasdaq you are not going to have a problem and if you do thats a very good thing.

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Posted by HagaDaga

Member since Oct 2020

3477 posts

Posted on 7/10/24 at 10:36 am to thatguy777

quote:
The bid/ask spread is usually a good indication of liquidity. But just think for example the stock is a $20 stock and 1k shares trade on an average daily basis, then that's $20k worth of stock that traded that day. If you have $20k of that stock it may take you a while to sell or you will be selling the stock for a lot less than $20. Just things you need to look at, but any stock in the s&p or nasdaq you are not going to have a problem and if you do thats a very good thing.

I really appreciate the info. I made another thread about how I'm trying to get into trading, so definitely trying to find all the things I should be looking for from experienced traders. I'm also definitely starting off simple with S&P/Nasdaq type of stocks. If I get into more complicated things down the road fine, but not right now, if ever.

Thanks again for your tips, and if you have any other things that you (or anyone else) have for a newb trader, please let me know. Kind of things you wish you would have known and done different out of the gate. TIA.

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Posted by Jag_Warrior

Virginia

Member since May 2015

4292 posts

Posted on 7/18/24 at 8:25 am to HagaDaga

quote:
For day/swing traders…

As I recall, in one of your other threads you mentioned starting with about $3500 to open your corporate account. Rather than trying to day trade that amount, once you’ve built a good base of knowledge about the mechanics of trading, I’d suggest you at least consider swing trading - especially if your main business keeps your focus off your monitors for any period of time during the day.

As active or relatively frequent trading goes, you’ll find that swing trading is more “forgiving” than trying to day trade.

Best of luck in your trading journey.