buy stocks without moving the price higher

I am new to stock trading. I bought 1000 shares of a stock on single market order and price move up half penny. I like to use big orders because commission is cheap with just 1 order. Later on I want to trade more than 1000 shares. How to get in and out of market without moving the price?

How many outstanding shares are there and what was the cost per share?

Sounds like you bought a stock with either low price, low volume or low liquidity.

its averagge daily volume is about 120K, outstanding share is about 50M. price was about 1.20.

What do you mean by "Sounds like you bought a stock with either low price, low volume or low liquidity"? Can explain each possible issue? Any book I can read regarding these issue?

1000 shares is really not a large amount so if you can actually see the price move because of a 1000 share order then the price is either really low (such as in penny stocks), there is not much liquidity (no one is willing to sell unless they jack up the price) or there is a low volume of orders (like an average daily volume of 15,000 shares). Those are just some of the reasons the price could jump.

But moving .005 (half a cent) is really not much on a $1.20 stock. I was thinking perhaps it was closer to a penny stock where .005 would be a significant jump.

There also could have been another large order situated around your same entry price. Did you check LII quotes? Someone could have had a 10,000 block trade in at the same price and that could have jumped the price too.

Been a looong time since I have read a stocks book but on my shelf I can see "How to make money in Stocks" by Bill (or william) Oneil. This was one of the first investing books I bought and it has been through several revisions. Lots of charts so it was very helpful. Also "24 Essential Lessons..." by the same guy. Another is Hedge Hunters, while less about stocks it got into the minds of hedge fund managers (much like the Market Wizards series). And lets not forget the usual trader psychology books by tharp, elder, douglas.

Hope that helps some!

I don't have LII quotes. I know chart analysis. Trading stock is bit complicated than trading forex. Right now I am just try to learn mechanic of buying and selling stock, things that are specific to stock, such as LII, different exchange rule, how to select stock to trade, etc. I am position trading stock in cash account right now. I will switch over to daytrading with margin once I am familiar with trading stock. I hate learning curve.

You might really get a lot out of the Bill Oneil book then, He outlays a whole CANSLIM system for picking the right stock to trade. You can find it on amazon. I think it was around $5 used for the 2009 edition.

I checked Wikipedia. This idea does make sense to me. This idea requires very strong trend. I would not use this idea in this economy. This idea still works but probability of success is much lower because we are in bad economy. I will put this book on my to read list.

What is the different between low volume and low liquidity? I thought they are the same thing.

Volume and average daily volume deal with how many shares change hands in a given period. Liquidity deals more with how easily you can get into and out of a particular security.

If the average daily volume over a 3 week period is 15,000 and you buy into that with 1000 shares you are consuming 1/15 of the average daily volume which could affect the liquidity of the security. Whereas if you buy 1000 shares of a security with a daily volume (turnover) of 5million shares there is less of a chance that you minor 1000 share order would move the market any significant amount.

Now suppose you want to sell your 1000 shares in the stock that only has a 15,000 daily turnover. What happens if there are no buyers? The liquidity has dried up because no one wants to buy your shares at the price you are willing to sell at. In order to create buyers the mm has to lower the price which in turn can bring a buyer in and this will provide liquidity.

It would be much simpler for you to dump your 1000 shares in a market that has a much higher turnover, such as the security that has the higher turnover because there are many more people willing to buy and more price levels.

Here are some additional links to investopedia.com. I learned many things from that site and is great for investing related definitions.

Volume

Average Daily Volume

Liquidity

Also remember that trends form on more than one timeframe. The book works off of a larger timeframe but who is to say that it cant be applied to a lower timeframe? If you pick up some bits from the book and learn a bit about support and resistance then it could be applied to lower time frame trading but with a better caliber of stock.