actually i am aware of this method. i have a friend that does this (or something similar). he shows me his account every few weeks and he's been making consistent profits for about 2 years now. he scalps nyse stocks for pennies but they add up and he ends up profitable every single month. the gains are not big ($2k-$4k a month) but perhaps someone with more talent or more size can make them grow.
Dont get my wrong, i dont make big bucks, and am new at this, but my point is that after 2 months if i can scalp 60-65%, than it is totally reasonable to expect more than this from a seasoned veteren. I trade about 70-90k shares per day on around 100-140 trades a day. I trade in 10 lot orders, and am working on moving that to 15 lots this week and from this point forward. I would say i am profitable 80%+ of the days i trade. Last month i scalped $1050, this month i am up $500 ish, and last month was my second month trading ever. How would you like me to prove this to you?
Institution? 50% not close? You my friend need to get the clue. have you day traded any size? Do you know how to trade intraday size? Don't comment on topics you know di#k about
i disagree....in order to be consistently profitable a "scalper" needs to be in excess of 60% after commish. i rarely let winners run these days but i rarely take a loss(pre-commish). i am not about to dig through my trades but i would guess that 60% to 70% are net profitable. i believe if i fell below 60% i would be in the red. very low commission is a must in order to compete with the big institution's bots.
10 lots as in ten shares?????? I am doing some simple math here: 10 lots at a time x 140 roundturns a day = 2400 shares. How do you come up with 70-90k shares a day? You forgot to tell me what firm you work for? How much do you pay per share? What front end do you use? Where are you located? Sadly it will be difficult for you to prove it, but there are many ways to do so if we set our minds to it when that time comes. nitro
I am going to assume that you did not understand what I was saying in my post because I have no idea what you are talking about. Almost all institutional order flow is not scalping, it is TWAP or VWAP. Since we are ignoring those institiutions because we are talking about scalping, in every single case that I am aware of, the high frequency trading that some hedge funds do that is related to scalping amounts to pennies made here, pennies lost there, but done many many times over the course of the day in astounding volume. It is in effect a bulldozer picking up tens of thousands of pennies because of their commission structure that makes it possible. The only person that I know on ET that does this is trade-ya1. Perhaps he can clarify the numbers. nitro
What firm do you work for and or who is your broker? What is your comission rate? How many trades a day do you do? How many shares? nitro
Haha, maybe you would like to have my babies as well.... geez. 10 lots to me is 1000 shares, so if i got filled my full load every trade that is between 100000 and 140000 shares per day. TOday i traded 81k shares on 116 trades, so thats 698 per fill. Obviously i dont get fully filled every order. I work at a prop firm, i pay low commissions. It has full passthroughs so a round trip trade costs anywhere from negative 50 cents to $3 if i took liquidity on arca both times, or provided on island both times ($1 per 1k for each side). I use the proprietary trading interface. I use basically no indicators aside from lvl 2. Im not telling you where im located because that is irrelevant. If you want, i will PM you my blotter tommrow and perhaps you will believe me, seeing as its not even difficult to trade 50%
No, I am being serious. I am just gathering information. The reason I asked is because if you were in Chicago, that would be one way to prove it since I live there. Got it. OK, so here we have a bonified scalper. Good. Ok, got it. So are you a liquidity trader? In other words, are you making most of your money from rebates, or from the actual trade? ja, I know of a company in Europe somewhere that does this...They mostly sit on the bid and ask with size on stocks like SUNW and others that never move...Not sure if that is what you do all day. I thought the liquidity/rebate game was over... See above comment as to why I wanted to know where you live. Ok. Are you going to send me the trade history, or just the PnL? The 50% number is not scalping. I keep being misunderstood on this. nitro
you're right, we're all misunderstanding... i for one am misunderstanding how you are commenting on something you don't quite understand.