There was a thread recently that touched upon a topic that I haven't seen discussed to much and has sparked my interest in participating. http://www.elitetrader.com/vb/showthread.php?s=&postid=1195831 Theres a reason why its not all discussed that much, but I won't go into enough detail to get the death threats. Seems a large percentage of the new people, and some old are looking everyday for the easy shortcuts. From many of the posts i've seen people are chasing their tails, or just don't have clue what direction to go. Whereas there are many directions you can run in later, there are only a few for the undercapitalized trader. You can either scalp, or you can actually learn how to directionally trade and manage your positions with portfolio risk. With all thats going on in the exchanges and our current trading environment its only fair to reiterate what has been taught and read and reread just doesn't sink in till after you loose your first 25k or so. One of my favorite sayings taught to be me was. "Trade SMART not Size" If your a scalper your thinking, I only trade 1k to 2k at a clip and I have close stops ect. Thats great, except for wheres your ability to grow? Liquidity issues even in the largest stocks will make it hard to make money scalping. Even in the thickest stocks you soon have a diminishing return factor due to the decrease of volatility in the thicker issue. One disclaimer though. I am only talking about liquid issues, not the illiquid stuff where the trader plays market maker. Scalping over all is a great skill to have, but there is no real longterm trading career in it. Hedgefunds don't want scalpers, IBanks don't need them. You are highly likely to burn your self out, and when you do where are your transferable skills? You have been trying to buy and sell pretty much the spread for the last few years? 12.5 cents is only the spread, its an 1/8th you need to realize thats not a market move no matter how dull the market is. So where does that leave the new trader. A. S/He can go the scalping route, take on more risk than they are able to probably psychologically handle to begin with per position. B. Learn to directionally trade and actually embrace the management of risk spread over a portfolio of concurrent trades. Now I know your thinking scalping seems easier. Is it? Maybe it is, but how many times in the P&L thread have we seen one stock destroy a good guys day? Lets look at the quote again. "Trade SMART not Size" Its actually easier to trade a well managed 100 share intraday portfolio up to $100 a day consistently than it is to trade one 100 share position at a time and by the end of the day end up with 100 dollars. Scale this and so on. Also there is not the same liquidity crunch and susceptibility to montage games. Whether you believe what I just stated or not its up to you. Also when you develop these skills they are transferable to larger portfolios. So what I would like to do is start a disscusion about this topic. have you ever thought about trading this way? Do you currently trade this way? Do you think scalping better? Lets get it all out in the open. Why such an emphasis on size? It almost seems as our current trading culture is a socialization of losing behavior patterns. Just something to think about, and I wish everyone the best trading going forward.