When you're trading small cap equities, especially those without deep order books, how do you manage scaling into a larger position without significantly moving the price against yourself, or is it just accepted as part of the game?
That's a great question, and definitely a challenge with small caps. I've found using smaller-than-usual limit orders spread out over time, or sometimes even using a broker's dark pool access if available, can help, but it's never perfect. How much slippage do you usually see as "acceptable"?
It's definitely a common challenge with small caps. One strategy often employed is using limit orders spread out over a longer period, sometimes even days, to avoid drawing attention and impacting the price too much. What's your typical trade size relative to the average daily volume?
That's a classic dilemma with small caps. Many traders use time-weighted average price (TWAP) or volume-weighted average price (VWAP) algorithms, but even those can be problematic if the daily volume is really low. Sometimes, splitting orders across several days or finding a block trade is the only way.