Then just buy 10k shares on the ask. If it gets taken out, just leave the order there until all shares gets filled. Eventually, traders will hit your bid if they don't see any further movement. Problem solved!
I guess it varies on the situation, but just buying to ask price imho can be immensely punishing unless the contracts are extremely liquid with little spread. For instance, current MNQ positions I have are very spready. One of the position has bid of 4.70 and ask is 8.50. That's a huge loss unless you think bid is gonna blow up big past 8.50. The industry rule is always go for limit order. Let the price come to you. Or if it doesn't, maybe it was meant to be. Always be calculating and systematic about your trade system.
The main thing that I figured out from my post is that there is no rule of thumb on position sizing for small-caps. I guess I need to create my own rule based on my empirical experience.
That's when you know you are good tbh. You are less wooed when people talk about amazing brilliant trade ideas. Why risk it when you got your own system that works? And there's a lot of distance between what could work in theory and how it actually pans out in the end. If it works so fucking well, why bother evangelizing?
There are stocks like MVIS when it was crossing over $1 had 990,000 on the offer. 10,000 shares does not impact liquid stocks. My best trades are micro and small stocks. BB and certain razor Pinks can walk up $2 on 1000 shares.
I think you will love small stocks, they saved me in 01-02 very tough Market. Yesterday I bought back a small stock originally bought on Friday starting at $1.25 scaling up. Sold most at $2.50 and the rest on Monday at $4ish. It tanked below $2, I bought back and it’s moving up again. Wrote about it, they are brutal if you don’t read the tape right. Best of luck!
That is true statistically small caps tend to be more profitable than mid-large caps. But i cannot read the tape)) I am not very good at discretionary trading. I do more systematic trading but without a bot
I feel that you shouldn't worry about affecting the price of a stock by investing $10k. Stock market is still enormous and 10 000 is not really much for any company which is presented on the stock market. It is hard to tell about the right position of the investment in a low-cap company because it may depend on very many different factors. However, I don't really think that an average individual investor is able to affect the stock price in serious way. You've got to have huge amount of money to do that.
This issue is quite subjective and it depends on the amount of risk you are ready to take. Risk management is of utmost importance because it helps to preserve the most part of your budget irrespectively of the fact whether your deal was successful or not. There is a popular idea which sounds like this: the main purpose of investing and trading is not to gain the profits but to preserve what you already have. So, we can also say that diversification reduces amount of potential profits but it is considered to be a key thing in all kind of investings. Why? Because it helps to keep the money that you possess. The same thing is about position size, you have more potential profit if your position size is big, but you also have huge risks. Now speaking about the most comfortable position size of the small budgets, I deem that the best proportion is to trade 10% of your budget. It is not the question of a position size, but the sum of all the opened deals should nor exceed 10% of your deposit.