woofys
212 posts
msg #93769
- Ignore woofys |
6/12/2010 10:44:14 PM
lets say XYZ is at .002. you buy 150000 shares for $300. xyz goes up to .009
your profit is .007x150000 = $1050 profit. Question: will the market makers
let you walk with that kind of money? I am conserned here about the BID when
you sell to close. Your opinion. Thank you
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cwn6161
40 posts
msg #93816
- Ignore cwn6161 |
6/14/2010 9:51:43 AM
What makes this question any different from any other stock with a spread? You can set a limit order to get out when you want.
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Kevin_in_GA
4,599 posts
msg #93817
- Ignore Kevin_in_GA |
6/14/2010 9:57:07 AM
Liquidity is the key issue here. If you try to dump 150,000 shares of a thinly traded stock, you will pay a big premium. Don't just look at price - make sure that YOUR shares are less than 1% of the typical trading volume each day. In this specific example, the average daily shares traded would need to be above 15 MILLION.
This can be done - the filter above returns 57 stocks. However, that is only the minimum criteria that would let you exit without taking a big hit - the stock still has to appreciate 300+% beforehand!
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woofys
212 posts
msg #93930
- Ignore woofys |
6/16/2010 10:22:34 PM
cwn6161 Thank you cwn6161
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woofys
212 posts
msg #93932
- Ignore woofys |
6/16/2010 10:52:40 PM
kevin-n-ga Thank you for the great detail you went into kevin. I am for the most part way better off than I was. What you have posted still leaves me wondering a bit...what if I tried dumping just a few 1000 shares at a time? Might that work? Believe me I really appreciate your advice on this matter. And thank you again sir.
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four
5,087 posts
msg #93936
- Ignore four |
6/17/2010 12:30:32 AM
You are illuminating the problem with "perfect" back-testing and paper trading. Thank you.
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"...you buy 150000 shares for $300"
For about $300 or less (remember to set a stop)..., why not try your hypothesis.
Many would pay (more than $300) for someone's strategy (sight unseen).
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Robert C. Savage
Most people are willing to pay more to be amused than to be educated.
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