Intra day trading volume control

[oversea007]

hi guys, I am new here. Nice to meet you all.
I have a question about placing order. For example,I want to buy a ABC stock at $9.99 for 20000 shares. Do you guys place one contract with 20000 shares or place two contract with 10000 shares? what happens when you want to buy 100000 shares? I only use 1m, 5m Charts for entry and exit signals.

Thanks a lot.

 

[DionysusToast]

We wait with baited breath for word from one of T2Ws many 100,000 share traders....

Mr Bond - could you expand on this - what is your concern ? Many people trading volume will have a platform that splits up their orders for them. Hitting the market with 20,000 or 10,000 shares in one go isn't going to look much different to those looking at the tape. Splitting a 20,000 share trade into lots of 100 will look very different.

What are your concerns exactly ?

 

[oversea007]

Hi DT, I am using one broker's platform for Charts and using Zecco for placing orders since they charge $4.5 per trade. My concern is when I am looking at the charts, if the Candle stick shows the price at $9.99. When I placing contact on Zecco at the same time, would the final price jump to $10.03 or above? Would the splitting contract be more accuracy?
Thanks

 

[DionysusToast]

First of all - realise that the number of shares you order has a bearing on this. If you really are planning to trade 20k shares a clip, then you should not be using Zecco, E*Trade, Schwab or any of those types of brokers.

With a limit order, you will either get filled at the price you set (or better) or you won't get a fill or you'll get a partial fill.

Second - realise that the last trade that went through was either at the best bid OR best offer and there is usually a difference (spread) between the two. When you want to buy now with a market order, you will be filled at the best offer and maybe clear a few levels of offers depending on the qty.

With a market order, you will have people with limit orders at 10.00 and above. So - let's say there's 1000 on offer at 9.99
5000 on offer at 10.00
2000 on offer at 10.02
etc...

You are going to get filled against those offers at those prices. You wont be getting a single price for your order UNLESS you enter a limit order for 20,000 in which case you may/may not get filled but you WILL have tipped your hand to other market participants.

If on the other hand, you are trading 100 shares a clip - you'll still get filled against the best offer - which may be the last price or it may be above the last price by a cent or more depending on the spread.

I think you need to do a bit more reading before you get into intraday trading. Read up on Level 2, depth of market (DOM) and time and sales and it will be clearer.

 

[oversea007]

Thanks DT. I've been trading with T + 1 in forign market. Each trade takes at least a few days, even weeks. So I never pay attation for a few cents different when the contract gets filled. Just like you suggested, I might need to swtich to some dirct broker, like TDA. As for Level II, it's a whole world to me. My technique doesn't use scaping etc. But with Level 2, it might help me to place the right amount of shares to get more accuracy. Can you please provide some links about Level 2? Thanks again.

 

[oversea007]

BTW, I've been using ThinkorSwim platform and tried Play Back feature with paper money on 5m Charts. Avg 2 to 5 sets of trades per day with pretty nice return. Even including 1 or 2 cents difference when buying stocks. I've also tried using real money on Zecco. Well, only 100, 200 shares for testing last week. I will do more testing with real money by adding shares per contract, 500 , 1000, 10k .... Anyone has other suggestions? Thanks