Aloha again mute, I have a couple of questions for you to ask yourself. Not to offend, but to reflect on. Why do I like scalping? Usually the answers are: low risk because my stop is close, and not in market long because it makes me feel uneasy. Both not very good answers. How much do I want to get out of a scalp trade? If the answer is less than a point or two, think again (assuming trading ES). I think a fixed target is one of the biggest stepping stones for a scalper to put into practice. If you're scalping, you probably aren't holding for more than a bar or two, unless you're scaling in to avoid a loss. Are you willing to scale into a losing trade? This could help turn a lot of losses into at least BE trades but also break the bank. You would need to know about the market cycle and when to scale in and when to give up. Giving up is the hardest thing for a beginner scalper to do, often scaling in repeatedly to try to avoid any loss, while simultaneously digging a deeper and deeper hole if your answers are: Because I want to make a lotta $$, 1-2 points, and yes then you're on the right track Unless you're trading within a range (using range trading scalping tactics), start by only scalping with the trend.. Risk/Reward is one part of scalping, but probability is the second and most overlooked/important part. IMO.
Yea. I'm trying to speak to the op's point about forum goers not being able to talk markets relevant to scalping the NY open (assuming futures) because it's true. I listed off the reasons why, quite verbosely, to demonstrate how big the holes in most people's knowledge are. If most don't even know half the shit I mentioned, how can you (op) expect them to talk markets. True you can ignore all of the above and still trade, but VWAP? And vol? And beta? And rates and index comp? I'm not disagreeing with him. The discussion is full of fluff and back and forth with nothing but banter and anecdote. In a word, unproductive. What kind of discussions do we find here? Ones where traders seemingly ignore the vol and rates markets, traded volumes and internals. If your smart enough and look hard enough you can unearth some hidden gems, but it's not easy nor efficient, not in the slightest.
I'm referring to (not looking now) an understanding of synthetics in cash-markets. The only utility would be shorting some HTB thing like GME. You need to know where the fwd is if you're trading vol but again, no benefit to D1 Either he's RegT or RBH, and that's simply 4X intraday or 15% concentrated. If D1 then no vol-component nor any need for BS like dealer-gamma positioning or Greeks. Factor returns, baskets, sure. Anyway, I don't get the point other than some ppl know things and others don't. I suppose you'd like to (think you) know where move originates.
For greeks, yea you're right, but mega cap implied is always involved. With synthetics, just a basic understanding of replication is what I meant -- that options are a spanning set. I was thinking more like synthetic futures, i.e. index spreads, or pricing a synthetic index in the cash market. Ex: Sector spread - long/short XLK/XLF or long cap weighted short price weighted (beta ratio spread). Even a basic understanding of RegT vs SPAN is not present in discussions.
I am a scalpng trader, and I trade at the tick level, fully automated programmatically There is a basic fact that is correct. From a decade or more, only low profits with low risks are reliable financial models. Therefore, scalping does not violate this principle.
Well, in their defense, I think it's important that everyone is on the same page before a meaningful discussion can ensue.