i've searched thru all of ET for scalping threads...

Discussion in 'Trading' started by MoneyGod, Jan 30, 2009.

  1. MoneyGod


    i'm trying to learn as much as I can about scalping as that style of trading interests me. I know the consensus is that all the new people are attracted to scalping as opposed to let's say momentum trading...but I just like the idea of a somewhat consistent income from scalping as opposed to momentum trading, where if the market is choppy, you can't get in without being whipsawed.

    So far what seems to interest me is scalping equities, specifically SPY. I've been trying to paper trade first with ThinkOrSwim, which from what I read is pointless especially when scalping. Am I correct?

    Here are a couple of my thoughts and questions, please tell me what you think -

    1. The best platforms for scalping are either X-trader or Laser.

    2. Regarding whether scalping can be done effectively from home, I've heard conflicting reports - some say that you are at a disadvantage because of your connection, some say it can be done.

    3. The general scalping technique is to use the "open book" which I assume is Depth Of Market and Level II quotes...I also have been looking at Time and Sales, how important are they?

    4. Can anyone post some strategies related to using the open book to scalp?

    5. When looking at the chart while scalping, it is only to determine the general trend in the market. You do not scalp off charts, unless maybe you are trying to scalp S/R.

    6. I'm located in NYC if anyone would like to meet up to exchange ideas or possibly provide some mentoring, that would be great.

    7. Some people have recommended prop firms, can anyone recommend some specific firms that are good in NYC?

    Thanks in advance for any info you guys provide
  2. gucci


  3. There's a great degree of randomness in scalping.

    Bid-ask spreads and commissions make it a negative sum game, with almost no chances of profit in the long run.

    You have been warned.
  4. Surdo


    I guess you never figured it out!
  5. MoneyGod


    Some people seem to be consistently profitable with it though. So it can't be completely random.
  6. When I started out in 1998, I used to be able to make a living scalping with a 2000 dollar account (avg 200 dollars a day).

    If you don't know how to do it then keep a very open mind. Do your research and don't expect someone to stuff money in your pockets.
  7. MoneyGod


    wow that's a lot, i'll be happy to average $200 a day even on 50k
  8. Just sit at your computer and stare at the price all day long for a couple months while comparing the movements to a 4 hour chart.

    Gaining knowledge is always better than gaining 57 different pieces of advice from 23 different types of traders.
  9. Best advice, stay far away from scalping. In spite of waht some paper traders here will say, it is a lousy place for a newer trader to start.

    The trading costs will make it almost impossible to be consistently profitable.
  10. MoneyGod


    what type of trading you recommend?
    #10     Jan 30, 2009