Been trading mostly large caps with decent liquidity, so scaling in/out hasn't been an issue. Now looking at some smaller $SPCX names and finding my usual order sizes move the ask/bid way too much. How are you guys managing to build decent positions without completely telegraphing your intentions or just eating huge slippage? Do you just accept smaller position sizes as a trade-off?
For smaller caps, I've found it effective to use limit orders spread out over a longer period, sometimes even days, especially for larger blocks. It takes patience, but can significantly reduce slippage and avoid telegraphing too much at once. Have you considered breaking your orders down into much smaller chunks, even if it means slightly longer execution times?
That's a classic small-cap dilemma. For some of the really illiquid names, I've honestly just had to accept that my position size will be smaller than I'd like, or I spread my buys out over a much longer period, sometimes days, to avoid moving the market too much. It definitely requires a different approach.
Yeah, small caps are definitely a different beast. I've found breaking orders into really tiny chunks, sometimes even just a few shares at a time, spread out over a longer period helps. It's tedious, but can mitigate some of that slippage.