It's been reported lately that Specialists and MM's don't make even remotely as they used to. That can be a result of an aggressive scalperâs competition which ultimately undermined both. The demise of many scalpers can bring profitability back. As we all know changing market conditions are "killing" various trading methods. As the market changes again, mediocre scalpers can come back to the scene. I believe that good traders (scalpers or not) will continue making money through changing market conditions. TM Trader
Scalping stocks is definitely not an easy way to make money in the market. There are a few Nasdaq stocks which I think can still be scalped for 25-30 cents profit per trade (semiconductors) and I do know people who scalp these on 3-5K sh lots and make a decent living. But, I think the Futures market is better suited for scalping due to more liquidity. It's easier to get in/out of a 20-lot on ES than it is to get in/out of 5K sh. 2 ES pts on a 20-lot and you're up $2K -Fast
MMs dont make much but the specialists will always make a killing (at least as long as they are around). These guys only have inside info all over and also control the direction of the price for months. With huge block position, you have to be a complete retard not to make money as the specialist. Plus, the specialist rip off day traders very well. You know, like print out the short in one shot and then let everyone cover about 20-30 cents up. Easy money if you ask me.