I was trying to trade JNJ today just after the open.  68.00 had been key resistance the last few days, so I decided to try to short the stock in front of that level.  I placed an order to sell short 800 shares of JNJ at 67.95. The stock ran up to 67.94, stopping just shy of my 67.95 sell order.

I was talking with my trading partner Joel about this trade, as this seems to happen every day.  He said to me “You’re trading too large of size.”

I used to trade in 2000 – 4000 share lots back in the day, but I have reduced my size considerably in the last few years as it is difficult to get executed on any sizable order especially in the first 10 minutes of trade.  (I discussed this lack of liquidity at the open in a previous blog).  Now I’m being told that 800 shares is too large.  Funny thing, Joel is exactly right.  Look at the tape.

It’s all 100 – 200 share trades, my 800 shares is a monster sized order in comparison.  All the HFT programs trading in 100-200 lots can easily lean on my 800 share order for protection.   I guess we all have to trade in 100-200 share lots in the first five minutes of trade.

What a sad market this is, when 800 shares of one of your most liquid DOW stocks is too large of an order to be executed on.

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