Scalping MSFT, too expensive. Cheaper stock suggestion?

Discussion in 'Stocks' started by David1968, Feb 13, 2013.

  1. David1968


    Hi, my New Family,

    A bit about myself, I scalp (90% of the time), on occasion trade Penny Stocks - Pump and Dumps (long and short), and on a very rare occasion I do swing trades (holding overnight).

    More than a YEAR I have been trading successfully (NOT bragging about it) only one stock - MSFT. I scalp it for $0.03 difference , the only problem, my profit is way too small. I use $40,000 Buying Power (its all i have for Overnight Buying Power, I don't wanna use Day Power - too risky). And it means that from one trade I can only make $42 (-$6 fee) = $36 profit.

    I usually do 1 , sometimes 2 trades a day. It's way too little money to cut my days at work lol. I love MSFT because it moves no where the whole year, and making $0.03 profit on this stock is very easy. I live this stock and breathe this stock day after day.

    My question is - can someone recommend stock like MSFT but twice ot three times cheaper? In $10-$15 range where I can possibly do the same Scalping Trades in $0.03 range? The stock that like MSFT is not moving anywhere?

    Thank you so much !!!!!
  2. HSBC used to be very stable. Also it's a large cap like MSFT.
  3. Trade 1/10th the size and play with AAPL or GOOG.
  4. if you are intraday only, I dont understand why you dont do 4x PDT leverage... like you said, you are in and out... unless you are holding overnight when it goes against you and at that point in time you have to take your loss or face a margin call..

  5. Gizzz


  6. steve3001


    The problem is that when you move down in price to a security that has similar liquidity and stabiltiy to MSFT, then I think you will have to scalp for less than $.03. From your post, I am assuming that you are using IB(or similar) as a broker, so the bigger volumes will also drive up commission costs. EWJ was the first security that I thought of, but I don't think it helps you much here.
  7. David1968


    Thank you Family !!! Wow I appreciate all the answers and help !!!

    1. Softdown - but HSBC cost almost as MSFT? $25.36 today.

    2. Atticus - I am sorry I don't understand what you meant, sir? 1/10 of my account? I would make 10 times less? AAPL and GOOD are so expensive? I cannot even trade MSFT to make money.

    3. Ofthomas - Sometimes I do hold overnight if MSFT does not go my direction. If i use Day Power , as you said, i would have to sell and deal with losses,

    4. Gizzz - Sprint !!!!! I looked and I liked it !!!! Do you scalp it?

    5. Steve3001 - I have NEVER trade Securities, but would love to learn. I trade MSFT on it's $3 per trade. Penny stocks i trade on Etrade.
  8. David1968


    Steve3001, sorry I misunderstood your question !!!! I thought You were talking about Options LOL

    I agree if i trade cheaper stocks , it will be hard to find $0.03 difference, I think $0.01 or $0.02