A Question for Scalpers

Discussion in 'Strategy Building' started by FaderTrader, Apr 10, 2006.

  1. Looking at the past week, i haven't seen anything like it. Seems like they are pretty liquid actually, I'd trade them.

    Sure there are gaps on the open.

    But most day-traders do not hold positions overnight. So it is irrelevant.

    It is a risk we all take though. We have to deal with it, if we don't, we will fail if we can't accept it.
     
    #11     Apr 10, 2006
  2. Good - now tell me why scalping is assumed to be a low-volatility strategy then?

    Or will you cede that it is just a mechanism put in place by trading firms to keep the BP low and the commissions high for young traders to stupid to realize what they are doing?
     
    #12     Apr 10, 2006
  3. Good luck - trying hitting out of AHC when anything 2000+ comes onto the offer.

    Better hurry though, they are about to do a 3/1 split.
     
    #13     Apr 10, 2006
  4. Low-volatility strategy?

    I don't know, I don't scalp low-volatility stocks, someone else would have to take that one again.
     
    #14     Apr 10, 2006
  5. Low volatility meaning that consistency of returns - scalping day in and day out.

    My argument is that it can't work.

    To be clear - I take short-term directional positions, but I never get into something unless I have a directional bias.

    I'm defining a scalper as one who has no directional bias aside from maybe some order flow used as safety.
     
    #15     Apr 10, 2006
  6. When I used to scalp, my commissions were 60% of my Net Losses.
     
    #16     Apr 10, 2006
  7. I don't even know how to use order-flow to my advantage. I use support and resistance to determine a bias as to where the prices might go.

    Maybe I'm not in this category of scalping then.

    In that case, I'm shutting up :D I missed a lot of good moves on AAPL chatting it up :p
     
    #17     Apr 10, 2006
  8. Hey Ripley, how's the trading going, haven't talked to you for awhile.

    And yeah, 60% of your losses from commissions, that is where commissions will not allow you to be successful no matter how good at scalping you are.
     
    #18     Apr 10, 2006
  9. Fader... how is your monthly commission/net breakdown?
     
    #19     Apr 10, 2006
  10. .004/share

    Commissions have never made me negative.
     
    #20     Apr 10, 2006