Is it possible to day trade $20 million+

Discussion in 'Professional Trading' started by silk, May 30, 2005.

  1. silk


    Anyone think it is possible to day trade stocks (not futures and close out positions by end of day) with buying power in excess of $20 million?

    It can be frustrating to close out of 20,000+ share positions at end of day without slippage. So unless you are trading S&P100 names where there isn't much money to be made, I would think it would be a great liquidity hurdle to day trade stocks with greater than $15 or $20 million buying power. The good day trading stocks are usually under $10 billion market cap and often do not accomadate 30,000 share positions. Some do, but not day in day out.

    So therefore I assume that virtually nobody is daytrading with $20 and $30 million buying power in stocks. Am I wrong?

    So if you have $30 million+ with which to day trade, you won't be day trading stocks. I guess currencies or futures would be your only bet. I guess thats why hedge funds are all in Spyders and futures.
  2. Can i borrow you $200K, what different does
    it make in your life? :confused: but i try to return it.
  3. If you get the $200K "loan" from silk, could you then lend me $2K? It won't make any real difference in your life, and I promise to try and remember that I borrowed it from you. Thanks in advance.
  4. Yo Thunder - if you get the $2K can I get $20? It will not make a difference in your life, but it will buy me McDonald's and Taco Bell for a week.

    PS - I will probably not be able to return/repay it.

  5. ... Day trading with 20mill on a few names Give it a try, lol. That should be funny.
  6. The larger Schoney guys STILL have that kind of Buying Power - When they do max out their lines -- they probably would have alot of spy's and qqqq's in the mix !!!!! Alot I think right now is being very selective and maxing out size when a stock is a having a special day - and not playing the same stocks day in and day out !!!!

  7. might be possible with big sector moves, but picking single stocks with that $ would spell suicide, unless you can cut a deal with a specialist.
  8. Picking a single stock and hiting it with $20M and then
    have to deal with specialists too? what a headache :mad:
  9. would imagine difficult for discretionary, but quite possible with program, blackbox, etc. ie, trades 500-1000 stocks at once, 500 shares each long & short mix, lower systemic risk.

  10. 20 mil in a single stock wouldn't be too smart -- but when a stock is having a stand out day - I am sure some traders (not me-not even close) are buying 50,000 shares of a nice thick slow mover --- but I agree with how thin stocks can get - its not easy - I guess its all relative to ones account size and tolerance for P&L swings -- Maybe in the past a guy would trade 5,000 to 10,000 shares of 10 to 15 stocks - now maybe they are looking to increase their size and only play the so-called "stocks of the day"

    ... and people with access to this kind of capital seem to be trading 2 accounts - one a shorter term day trading account and the other a multi-day swing account ----
    #10     May 30, 2005