Program trading & the end of scalping era?

Discussion in 'Prop Firms' started by kitty1996, Feb 17, 2008.

  1. figure out how those proggies work and take advantage of them, thats pretty much eveyrthing i do
    #11     Feb 19, 2008

  2. Thats what you got to do. Question is how many times do you get punched in the nose before you learn how to block it
    #12     Feb 19, 2008
  3. ggoyal


    It still very easy to scalp if you know what you are doing. The only thing is that you have to spend a lot of the day time to make a substantial sum. no big gains/ no big losses. simple as that.

    I do some swing trading when I see a stock is over/under valued, ,but I am most comfortable with scalping because according to me it has the least risk.

    I have never had days that have ruined me, nor have i had days scalping stocks where I can relax for the next two months. I have had bigger days swing trading and trading power.
    #13     Feb 19, 2008
  4. jem


    I was a guy who did 20 80 trades a day. I loved programs hated decimals. The decimals allowed the NYSE specialists to take other side of trade.

    The pennies also allowed a hell of a lot more hedging against the futures. Which killed outsized moves which had previously been engineered by the specialists.

    Finally when the ecns got reasonable volume on the NYSE the specialists loss the ability to let the stock get all stupid for a little while and then pop it back in to line very quickly. (which used to be very profitable).

    Those of you put stops in on the nyse know how they would get out of whack for 50 cents for a couple of trades everyone once in while in the old days. If figured out how to use that. I used to scale out of the final part of my trade with short left significantly outside the market.

    I just loved knowing the clerk thought he was screwing my short order.

    Who knows maybe that trick still works.
    By the way I never ever saw that strategy published. I did not even tell my business partner about it. Because he would have blabbed about it on trading markets.
    #14     Feb 19, 2008

  5. I make anywhere from 1200-1500 trades a day. Play the program wait for the setups and do it over and over . Just like when i was a kid playing pacman and found the pattern i took advantage of it. Same logic here, somedays you play the breaks other days you play the range. Most important is to identify what kind of day the market is having.

    The scalping game you can still make some nice coin. The video game player can exploit the system. Every system has it's flaws and what is key to a succesful trader is to learn/understand the markets first then have the mindset of the patterns. Play them and never add to a losing position. Have your out and Don't miss it.
    #15     Feb 19, 2008
  6. Yes. The scalping environment is SIGNIFICANTLY better than one year ago.

    Liquidity is better.

    "More players" and "new players"... always helps the strongest players.

    If 50% more people started playing poker... would the Top 2% be complaining?

    No... but the bottom 80% would be...
    And they would be starting uninformed threads like this.
    #16     Feb 19, 2008
  7. "More players" and "new players"... always helps the strongest players.

    #17     Feb 19, 2008