I am new in scalping BUT never say I am new in regard to the knowledge of the Financial Market. Scalping is just one method of trading. It will not escape from the effect of the financial market as a whole. I know how the financial market works! And I am not saying he is not a good trader. He is good enough to read what the Specialist/the MM is doing & going along with the big boy. That 's good. A good scalper doesNOT need to manipulate the market, all he needs is to READ what the Specialst/MM is doing & going along with the house. He is a good trader, no doubt! I just don't think he can manipulate a $30 stock with only $250,000BP and most importantly, it's very DANGEROUS for him to do so.
Its clear you dont understand the daytrading environment yet, which is fine. Again, I suggest not being so stubborn and be open to ideas even if you dont agree with them on the surface. Oh and 250k is plenty to cause buy and sell programs to appear and cause movement in a $30 stock. You just need to know the spots where it will and play the game....
Who says the buyer I'm faking was posting huge share sizes? If some guy was stepping up 20k blocks all morning I'd be a moron to put in a fake 20k bid when he's gone. what if he was showing 300 on 3 different ecns with large reserves and stepping it up? If a seller whacks me on 900 shares that I don't want that sucks but maybe I do it in a spot where it's near some real buyside liquidity. Also, I wouldn't do it in a spot where the seller just came in... it depends on so many variables... I never take risk on a trader that's bigger than what I expect to make... I could go on but then I would just start giving edges away. That would be really stupid of me. I've given you guys way too much as is.
I will say again... I know & think he is a good scalper for being able to read the Specialist/the MM right. But I will remain that I don't think $250,000 can have any significant effect on a $30 stock. $2.5Millions would. I can see a 100,000 shares order would have an effect...not a less than a blocktrades nor less than 10,000 shares order. Besides...it's very dangerous for any traders to manipulate the market. Please don't tell me that it's not true! You think I am stubborn so be it! But I am in the financial market long enough to know what is very dangerous to do!
You have...but really to only those who already understand what you are talking about. The newbs either won't or want to argue with you about it
Hi Kitty, I can attest to what NYOB and Sword are saying. I traded NYSE stocks for several years and they are both right. You dont need that much BP to cause programs to jump out and cause movement. Its not something that any beginner should try but to the well trained eye, like NYOB I'm sure has, you can do a lot of things that you may not "think" you can. Happy trading to you.
think about it in strength and weakness. you can only tell if a stock is strong by watching it go down, and vice versa (tell a stock is weak by watching it go up. if a stock is going up watch the offers that come in while the stock is going up. these people all know the stock is going up and STILL they offer the stock. this provides the best opportunity to get in---> while the stock is moving. try to avoid entering positions when the stock is doing nothing. always make the spread at least once. (ie. if you buy off the offer because you see a move coming. make sure you get out while it is going up (on the offer) if you wait till the stock stops........ and then put out your offer, then who is going to hit you. every one else can also see that the stock has stopped going up and buyers will buy on the bid. hope this helps good luck of note: I don't scalp. I have done it as a strategy and it didn't work for me. I would make money everyday for a week then give it back in one day of bad trading , where i forgot my scalping rules. Style has to fit personality. and scalping didn't fit mine.
But what you are doing is just what I said, you can read the flow/the movement and most importantly, the MM/Specialists/or big guys wanna for the stock that moment/that day/ect... You are just going along with him...& know the market movement right to place what order/where/when...ect... But you are NOT the one who cause the movement a the stock. To me a person who can claim he is the one who can cause a movement of a stock is the one who can set the market where/how he wanna, against the mass/against the MM/the Specialists/the big boys. There was a trader who put a 1 BILLION dollar bet against the major indexes/the market last year, betting it will crash. Because of him, his order that day, it caused massive selling across the board because people were panic, including fund managers/of course program trading kicked in & started selling. This is what I called how a person can cause the market movement. One trader can cause a market movement in a stock too, but need lesser amount of money, not a billion.
NYOBscalper knows his stuff. Finally, it is good to read something useful. However, it won't make sense to most except .............
^^ He is the great scalper in ET, I think & know. But I just have a different definition of who/what can cause major movement of a stock. That is all. Thank you all for replies & best wishes.