Registered: May 1999
05-25-01 05:35 PM
Originally posted by Dustin on 4/22
I was a pure scalper from June 2000 to Feb 2001. During that time I only traded JNPR using the same techniques that you mentioned. For those 8 months I was very successful, until JNPR started trading at such low levels. Then, to make matters worse everything was decimalized.
The most obvious change to me was the way that INCA moved the stock. Nowadays INCA has more power than ever imo on these types of stocks. If you are on the wrong side you can easily get taken on a .50 cent ride just because all of the ecn traders panick and buy/sell way outside the current spread. When trading 2000-3000 shares that .50 cents can hurt. This became pretty frustrating to me so I have started trading different methods, and luckily am able to continue making close to the same daily averages.
I think over time as things calm down I will be able to go back to trading that way, but we'll just have to wait and see.
UPDATE: After taking a couple months off from trading JNPR for the reasons above, this past week I have started trading it again to see if things have improved. I am happy to report that they have. I believe that the problems were due to everyone getting used to decimals. Large INCA posts don't have nearly the power they did a month ago. Back to scalping... ;-)