scalping NYSE

Discussion in 'Trading' started by sub7even, Jun 9, 2005.

  1. sub7even


    Hi everyone!

    My name is Sergey, I'm from Moscow, Russia. I'm the beginner in trading. I've read all the articles about tape reading and scalping in this forum. As I've understood, the main reason for scalpers to enter the position is a big bid appearing ( when bid is at least three times bigger than offer). Here is my question:do you really think that the big bid can move the price?

    Just imagine: we see that in open book there are many big bids and they are placed in space 1 penny from each other and at the same time offers are small and rarely placed.
    Then the seller suddenly comes and what do you think happens with the bids? They disappear!

    Or: Stock is traded with low volume, there are no big bids and offers in the openbook (there is no evident advantage of buyers over the sellers), but the price is constantly moving up.

    As far as I know institutions generate more than 50% of daily volume of a stock. So, who drives the price? Institutions or traders when hear dood news?

    Sorry for my poor English.
  2. ig0r


    Kak dela.

    You're right, simply looking at size is a good way to lose money. Size that steps up and goes market is what moves markets (institutions).

  3. sub7even


    this is called market long and it happens very rare as it is an indicator of a bad qualified specialist -
    instead of getting (reaching) good price he just throw the whole order to the market.
  4. Weasel


    works better when there's a big offer, you hold conversions and hit the bid to get short.
  5. sub7even


    Do you use it? Successful? I don't think that it a reson why the price can move down...