You guys who do VOLUME, why so much?

Discussion in 'Strategy Building' started by yeayo, May 21, 2005.

  1. yeayo


    To all you guys who trade hundreds of thousands of shares a day, why?:

    If you lose money its no suprise, you're paying hundreds of thousands of dollars in commisions and fees a year.

    If you make money and good money, its still not even worth it considering the enourmous amount of risk and expenses you're taking on.

    Now the best trader I've have ever seen - and I'm sure you guys who check into ET fairly regularly know - is a guy that's probably going to make 100-200k this year trading 100 share lots. He does no more than 10,000 shares a day. Now that's pretty damn impressive.
  3. yeayo


    Relax, I'm just pointing out the obvious. If a guy can make 200k trading X amount of shares then just cause you make 500k trading 20x the volume - you make more money but the guy who trades smaller is a more profitable trader - he has a bigger 'edge'.
  4. yeayo


    Guys who trade small are often thought of as 'newbies' and 'pikers' even though they maybe much better traders than guys who trade much bigger size.
  5. Bullet


    his edge is not that impressive if he can not scale it up and make more $$....If more vol. is need to make more coin....i am in the camp of hit those buttons

    Good Luck
  6. yeayo


    Yeah scale up as much as possible and make as much as possible. But let's face it, size is costly - more commisions, slippage, risk, emotions.
  7. Why? Because their task master - - demands it of them. Their home page brags about a person trading 1 million shares of MSFT in a day.
  8. yeayo


    Yeah. Just want to say I'm not attacking size traders and hope this doesn't turn into a flame war. I just want to point out that its the expenses that do most businesses in, and I'm just curious why people take on so much expenses and risk.

  9. In a slow market to cut size is very important. The bottom line is more tickets more money(when busy). But by your question i can tell your experience. Whatever works for you "just do it". Here is your answer last april the big vol guys i know did between 100k-250k(for the month). That may be some small traders year or 2 years combined. And to make a mill a month, if you don't do at least 10million shares that will never happen. In this current market a trader must cut his shares and take less risk. But when busy you have to increase
  10. mogul


    I have no idea what you are talking about, unless your size can't be readily absorbed, how can it become more expensive?

    it's all relative, commissions, slip, risk, emotions
    #10     May 21, 2005