3 ms·
> You can't buy $InfinteMoney$ worth of stock X in a single transaction, you end up moving the stock price as you buy/sell. This allows others to respond to you
by comboy 12y ago
> You can't buy $InfinteMoney$ worth of stock X in a single transaction, you end up moving the stock price as you buy/sell. This allows others to respond to your activity. At small scales, a system that appears to work will break down at large scales.
OK, true it doesn't work up to infinity, but given how much money there is on the Wall Street, I would imagine that when your activities are big enough to move the market, you are way past the point of wondering what you can and what you cannot afford (say $1B+ not to be too vague). Especially given how many instruments there are out there.
- opendais 12y agoHe is trading penny stocks with a market cap is less than $50 million, generally. http://www.investopedia.com/terms/n/nanocap.asp http://www.investopedia.com/terms/n/nanocap.asp The amount of money needed to move the needle on these is very small, its why they are often used in pump & dumps. He doesn't have anything to do with "Wall Street" which works with stocks that follow SEC rules, commodities, etc. in the way you mean.
- namecast 12y agoDeleted my response when I saw this better one. I'll only add these links as they're good for background: http://en.wikipedia.org/wiki/Slippage_(finance) http://en.wikipedia.org/wiki/Slippage_(finance) http://en.wikipedia.org/wiki/Market_impact http://en.wikipedia.org/wiki/Market_impact
- deleted 12y ago[deleted]