If you dont trade at least 3000 to 10000 shares how do you make more than $100,000 a year .. So what shares lot size do you trade on average ?
IF we are saying average lote size 10,000 shares?!Then If your first trade is at least half position (some peolpe start with one third of a full position and if that is 10,000 shares/block which will be 20,000 to 30,000 shares full position and if you got right strategy, then i won,t be surprised if they make even a million dollor.
You do it by holding for longer than 15-20 seconds and capturing more than 6-7 cents per trade. Last year I traded 1K-2k lots, capturing small and large multi-day trends. Even that was more work than I wanted to do, so I increased my acct size 5X, and now trade the same way but with 2k-10k shares. Huge difference.
I think that depends a lot on the desired holding time of the trade. Scalpers probably won't do as well with stocks that trade 500,000 shares daily, but praetorian2 routinely trades low volume stocks because he is not daytrading.
I remember when i just new to trading, i started trading QQQ 10,000 shares and sometime holding overnight? it is nightmare when i think about it now. Even i have a sound mothed and know ten time more now, still not in a level to trade more than 3000shares full position comfortabley. Someone has to have realy confident in his startegy to trade 10,000- 20,000 shares in one position
57% trade under 1000 shares, so how do you make any money when thats only $100 for any 10c move....you must be swing trades that hold for a couple of days....
I take quick moves in stocks as low as 40k shares a day...obviously not 10k share positions, but if you find opportunity with something moving, you can trade it. The trick is finding the opportunity and knowing what to do with it. Determining positions size is not as easy as "how many shares should I trade?" it is dependant on the size of the bid/ask and volume traded at the moment. If I am leaning on a size at the bid/ask and it disappears...what am I going to do, and how much can I lose if this goes bad?
Making more than 10-30 cents profit, several times a day, is not that difficult, if you are experianced. Btw not every profitable trader makes $100k every year. For me even half that amount is called "success". Remember, trading is a business that you are your the boss and gives you life freedom, and not an easy way to become rich, especially these days, everyone is very knowledable and can,t stay avarage.
NO offence but surviving life you need at least $100k a year, unless you live with mum and dad... But success is what it is to you, not what it is to others ! Cheers