Normal
Rob_ee - If there is high liquidity in a stock its possible to relatively "safely" trade large amounts (I'm not recommending this be done unless you have either large amounts of money to throw away or a reasonable amount of experience of course). For example - if there is depth of several million shares only a few ticks away from the market price on both the buy and sell side, and volumes and liquidity are high on the day then as long as you apply your stops (which should probably include time based stops so you don't get caught out if liquidity dries up) you can attempt to trade relatively large amounts of stock for small profits during the day. (sitting in the queue is the safest way to do this and if you keep an eye on depth often you can exit with only brokerage loss if it goes against you) or at worst one or two ticks on the trade as long as you apply your stops and nothing goes wrong (see below).I prefer to only attempt this with stocks that still match my fundamental criteria so if left holding the baby for some reason (e.g. platform failure,unexpected manual intervention, preopen, trading halt, manipulation/trader traps etc.) I know I'm unlikely to lose the lot. This type of trading is not my style but have tried it a few times lately in specific situations where the fundamentals and liquidity criteria align (e.g.just after the recent BDG slump). Its of course important to have a trading platform that provides straight through processing, live trade and depth data etc., live intraday charting etc. and to know what the rules are for manual intervention from your particular broker as well. (e.g. comsec seems to go to manual after you've done more than four trades in a stock in a day), and also to not go away from the screen whilst in a trade (unless you trust your conditional trading rules).
Rob_ee - If there is high liquidity in a stock its possible to relatively "safely" trade large amounts (I'm not recommending this be done unless you have either large amounts of money to throw away or a reasonable amount of experience of course).
For example - if there is depth of several million shares only a few ticks away from the market price on both the buy and sell side, and volumes and liquidity are high on the day then as long as you apply your stops (which should probably include time based stops so you don't get caught out if liquidity dries up) you can attempt to trade relatively large amounts of stock for small profits during the day. (sitting in the queue is the safest way to do this and if you keep an eye on depth often you can exit with only brokerage loss if it goes against you) or at worst one or two ticks on the trade as long as you apply your stops and nothing goes wrong (see below).
I prefer to only attempt this with stocks that still match my fundamental criteria so if left holding the baby for some reason (e.g. platform failure,unexpected manual intervention, preopen, trading halt, manipulation/trader traps etc.) I know I'm unlikely to lose the lot. This type of trading is not my style but have tried it a few times lately in specific situations where the fundamentals and liquidity criteria align (e.g.just after the recent BDG slump).
Its of course important to have a trading platform that provides straight through processing, live trade and depth data etc., live intraday charting etc. and to know what the rules are for manual intervention from your particular broker as well. (e.g. comsec seems to go to manual after you've done more than four trades in a stock in a day), and also to not go away from the screen whilst in a trade (unless you trust your conditional trading rules).
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