Best Stocks for Scalping

Discussion in 'Trading' started by stasbz, Nov 3, 2011.

  1. stasbz


    my greetings.
    experienced traders: could you give me advice what stocks best for scalping? (under scalping i mean - take some ticks, keep position from 2c to some miniutes depends of market)
    we can divide stocks in four categories: volume, volatility, price, plain chart.
    i think that best stocks for scalping - price $10-25, 50-75c range.
    What about volume? it is better to trade high volume stocks or 1-3m?
    what more difficult? it is better to start from low volume stocks?
  2. for me $SPY is the best because it is LIQUID

    for the 10-25 range

    Us Steel X. (moves fast and range is more like 1 1.50 with the vix here at 30)

    Petrobras PBR- Range is small sometimes only 50 cents. It is liquid.

    QQQ is liqiud with a range about 50 cents or more

    good luck trading
  3. SINA is very volatile, liquid enough, and a higher share price means you pay relatively less commission if you have a per-share commission with your broker. But be careful, it moves a lot and you need to be fast. It doesn't follow the market so much, or the news.

    Volume (liquidity) is very important. In scalping you probably use market orders, so you will want to get filled at better prices. Don't scalp low volume stocks, you will get very bad fills.

    Don't scalp stocks worth less than $1, no no no.
  4. What on earth does liquid mean?

    I've dealt with all sorts of ETFs & stocks. They all seem to buy & sell just fine.

    The only requirement I have is that their market cap needs to be one half million dollars or higher. That keeps the difference between the bid ask prices very small, like 1 penny apart.
  5. msd87


    Look into PCX, it is 10-13 dollar range and it is nothing for it to swing 5-8% in a short time period in the day. I have made profits on it sort of scalping options on it daily... I compare PCX to a wild bull, if you can figure out how to ride it, you've got it made.
  6. Grinder


    Yamana suits the criteria.

    very tight spreads with a 1-3c spread, high volume with lots of liquidity and a great range. Also works well for margin being in it's teens.
  7. Liquid? I mean you can buy or sell 10,000 shares (or more) at anytime and get filled to to the penny. You cannot do that on most regular stocks (on normal circumstances). I am highlighting the word liquid to explain it is extra liquid compared to everything else

    ps- not all stocks with a market cap of X have trade with ANY way in regards to spreads and liquidity. It is up to market participants to determine this
  8. ken__0


  10. ken__0


    Predicting order flow from humans and algo's tricky business ..
    I leave that to you smart people
    Match point well said :D
    #10     Nov 7, 2011