ya I only thought newbs made this mistake <<< like me losing 5 billion in one trade 50% of assets ... errr ya if I would of; could of should of done this or that then I would be a gazillionare by now I always wondered that ... how big do you have to be to effect the market (ie make traders react to you).
I always wondered that ... how big do you have to be to effect the market (ie make traders react to you). [/B][/QUOTE] not very big at at..it will depend on the daily volume thus the reason some traders trade low volume stocks..a few thousand shares can literally move the stock... or when the stock is a momentum play.. ie aeos and nvda right now.. looking close you will notice the runs are fast and hard...also looking into who holds them..barclays uk holds 26million shares of aeos versus approx 2million held by most financial institutions.. ???why??? doesn't really matter but what does matter is when they take profits...they are equivalent to all other institutions holding the stock.. if they give instructions to sell ie 5million it ..the stock can be sold in blocks or at market...this would cause the stock to fall several dollars and others jumping on board..until ie barclays buy's back into its postion... question is what happens if they decide to unload the whole position as they get news that we are not privy to.. i am guessing the stock would get halted and open up dollars below..as what happened with rimm,nvda two years ago,rmbs,mrvl,brcm...and the list goes on... halting the stock allows stop losses to be ignored at a specific price versus market... that is why i personally use limit exits....get caught some times..but the losses would of been far worse overall. w
You say you lose limit exits. I'll bet you've been stopped out of trades far more often that you'd like to say. Stocks spike down all the time for no reason other than they decided to move the price. If you are leaving in hard stops, you are getting shaken out 10x for every legit dropper. No one ever talks about that. Just that they use stops and thats supposed to make them a pro.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=73234&perpage=6&pagenumber=18 Like I posted 50/55 is where I start buying.