How much $$ is required to be Scalp Day Trader ?

I've been trading for a year now, and I am a Scalp Day Trader, who likes to end each and every day in cash. I trade NYSE issues.

I'm curious, but for similar type traders, I have 2 questions:

1) How much of your own capital do you work with daily ?

2) What is your average block size that you trade ?

The answers to the above for me are:

1) I started with $ 50K initially. I am currently working with $ 65K,
but think that this might be a little light.

2) For most of this first year, I've been trading 2,000 share
blocks. I'm thinking of doubling this on average from here on
in.

Would greatly appreciate any other opinions on the above.

 

A lot of my trades are intraday, NYSE only. I will hold overnight or even 2-3 days if I feel good about my entry, So i'm not scalping.

Roughly 35K cash in the account. ~50K would give me more flexibility. 100K would be ideal witih daytrading power of 400K.

Typically 1-2K shares on $30-60 listed stocks with at least a 0.75 intraday range.

Again this is just daytrading and not scalping for pennys.

Heres one trade for you to think about for Friday. LONG SLB to its 52 wk high of 50.15 and then go SHORT.

 

not much value added scalping now days. i would try to concentrate on longer timeframes.

 

why scalp if you have $65k? Warren Buffett says scalpers pick dimes in front of bulldozers.

 

I could find quite a few people that would disagree with that statement....me included. Not as good as it once was, but plenty of value out there.

 

1) I started with $ 50K initially. I am currently working with $ 65K, but think that this might be a little light.


Well........65k*1%=$650.00

So with a 1:3 ratio that would be a stop 50.00 per contract sooo....13 contracts.


Michael B.

 

Frank to the bone, you started 'scalping' with a $50,000 account and you now have $65,000... so was this in a week, month, year or what?

If your answer is anything longer than 60 days in ANY market environment, it is possible you need to consider learning a lot more about what you are doing. You are either a horrible scalper (an average one can turn 10-20% a day on invested funds) or confused as to your trading method(s).

No intention to be insulting, just no sugar coating, the idea is to make money.

 

brokerj,

Yes, you were insulting.

 

$15k/2 months = $7500/mo = $90k/year. Sounds to me like he's doing just fine.


You are either a horrible scalper (an average one can turn 10-20% a day on invested funds) or confused as to your trading method(s).[/QUOTE]

10-20%/day? So an "average" trader with a $25k account can do $2500-5000/day? Are you trading on earth?

 

I was wondering what time frame as well so what time frame are you talking about?