my firm expects a 4 to 5 cent stop ?

Discussion in 'Professional Trading' started by oliver777, Jan 29, 2006.

  1. Does anyone have the experience of a tight stop and how do you compensate, I've been trading with a firm for the past three months and have seen all of my trades and research go to nothing as I'll get into a trade and then have to get out with one or two ticks due to the tight stops my firm expects from us.
    They say this is to stop any losses from getting out of hand, however I use the tick charts and can't seem to find any stock that goes straight up or straight down, hence I am always out of a position.
    This appears to be a commission generating plan, any feedback? gratefully appreciated.
  2. Change firms
  3. Stops should not be placed arbitrarily, each trade is different and should be evaluated on a trade by trade basis.

    Sounds like your firm is holding you back from properly learning to trade.

  4. I don't understand why so many people still trade at these tiny rippoff shops. Stick with one of the big firms (Assent, Bright, Genesis, etc.) and you won't have to deal with that crap.
  5. the stop is not actually placed, its a matter of stopping a small loss from getting to be a bigger loss.
    They employ a scalping technique that seems not to work. All of the work and I usually end up flat for the day.
  6. A firm should not tell you where to place a stop. That is what a margin call is for
  7. Do you mean you are working at the firm and trading their money?
  8. I came to a day trading firm with 5k,
    I generally trade this 5k, with 100k bp using scalping plan utilizing the NYSE open book . This hasn't worked out very well. Although I'm flat, the commissions generated is becoming too much.

    The second account is via TD Waterhouse and I use swing trading style, this has been amazing and have come close to 50% in the past 4 months. This style entails carrying overnight positions anywhere from 1 day to 2 weeks or until the trend is broken.

    Not sure why I am employing the scalping method, other than getting all of the trades out of my system for a very low commission. Even if I make some money with intraday, the first ticks down, my firm wants me to exit the position.
  9. Hey oliver
    Stop are there to protect u
    But i dont know what kind of stratgey does your company apply to be profitable .
    I think scalping is not easy that from me personally but there are pll who are making good money
  10. for those who can claim success in trading, does anyone have a similar rule of tight stops.

    For the others that trade (intraday, swing, or invest) can one succeed with this scalping style?
    #10     Jan 29, 2006