Scalper 101

Discussion in 'Journals' started by coolweb, Aug 12, 2006.

  1. So I've been researching, doing stats with a pen and paper,
    and still can not figure out a reliable way to go LONG in scalping,
    since I can't figure out the place to put in stops,

    EUREKA!!!! why sit here and waste time with your 2nd screwdriver when you haven't mastered the 1st hammer.

    So I therefore declare,

    I will only go SHORT in scalping for the next 3 months until I see consistent profitability. [ shouldn't be too hard] Using the same setup I've been using for the past year.

    my theory:
    for stocks to go up, it needs constant pressure, constant pressure isn't really constant because nobody is constantly buying, so it becomes hell choppy unless theres massive market movement.


    So Current status:

    All my efforts will be directed into SHORT Scalping, we'll start with 300 shares, small size,
    will train to maintain relative profitability.

    The short bias won't hurt me overall because I'll be trading with the trend, so on full +++ up days, I would most likely NOT be in the market.
    [ my swing trading provides me overall direction on the day]

    I may not be trading everyday but I'll trade more frequently on down days + chop days.

    Swing trading can't be traded on chop days.
    Scalping 10-15 cents can be traded on chop days :)
    #11     Aug 13, 2006
  2. I don't want to be a naysayer at all, as I believe everyone should experiment until they discover what technique truly gives them the most comfort. I just think that successful scalpers have methods for decoding order flow, not analyzing risk and reward via the charts like traditional position trading. It is VERY hard to do this with futures, especially because there is a much larger percentage of professionals participating.

    I remember when you switched to swing, it seemed like you were frustrated with the gaming that goes on by locals, specialists, and market makers (for good reason). I think if you want to scalp, you need to learn how to read the tape to discover where institutions are placing their bets, NOT focus on stop placement and potential reward. If any of your motivation to focus on scalping comes from envy or a desire to be held in high esteem, and not on a true faith in a specific edge, then you will probably just get pissed off at all the annoying spreads and stop runs that goes on with high vol trading.
    #12     Aug 13, 2006
  3. Although I should note, I like your idea of scalping on congestion days and taking swing entries on other days.
    #13     Aug 13, 2006
  4. What timeframe(s) are you going to be using CW for your scalping?
    #14     Aug 13, 2006
  5. I've been macro scalping GLD for months with a large degree of success. a clock:D
    #15     Aug 13, 2006

  6. Thats AWESOME infolode, love it, just checked GLD and it looks quite good,

    I'm going to look for other ETFs and update you if I find anything else as good

    I'm scalping with a 3 minute chart
    #16     Aug 13, 2006
  7. rjv27


    Sounds like a good idea. Who doesn't want an extra $360,000/yr.

    I'm looking into longer term (1 - 4 days) strategies to supplement my scalping.

    Good Luck!
    #17     Aug 13, 2006
  8. hi coolweb, I am trying to do what you are doing, scalping AAPL (not profitable yet) but I see a good potential, still working on 100 shares until I have atleast 2 weeks of consistent profits.

    I have my stop loss a little bit wider than yours and I still churn alot :(

    by the way, I have noticed that most good people like Steve scalp NYSE not NASDAQ, I wonder why ? still learning.......
    #18     Aug 13, 2006
  9. I trade NYSE shares a lot as well, I just decided on AAPL because I can get faster fills short on NASDAQ

    The scalpers who trade NYSE only specialize in their stocks, and since theres only one specialist, they learn how they move,
    I guess we can all do that, but my speciality isn't tape reading at the moment,

    The good thing about chart reading is,
    everything is on the chart

    All the volume from the tape, is on the chart, just drawn in a different format :)
    a buyer who accumalates 50,000 shares in a matter of minutes
    can not hide his ass on the charts :)

    Price level support can not be hidden, we see where he got filled 50,000 shares, oh $35.01 ?
    We are now at $34.85, He's down 15 cents. booohoo. we will enter in a position once price action starts reversing.

    We see him!
    #19     Aug 13, 2006
  10. jtnet


    this is what i am trying to learn, scalping, maybe even more micro-scalping for more times a day.

    Question for you though? what makes you want to trade NASDAQs or AAPL? arnt NYSE's better with having a specialist to gauge as it is a real person, thats the only thing at my trading firm people trade are NYSE listed stocks.

    edit: whoops sorry i didnt see your post above yet.
    another question, what indicators and types of charting do you use for youe scalping. good luck bro, ill definately be here the whole way reading.
    #20     Aug 13, 2006