Scalping

scalping with M-T works for me.

 

thanx a lot guys,

the information is very appreciated.

jc

 

I have two questions on JWKirkland. What is bullets or conversions. And what is it, watch futures and go with flow (some charts or so?)

 

I will pre-empt JWKirkland and let him elaborate when he sees your post... Bullets and Conversions are a tool restricted to Professional Traders (i.e. traders affiliated with a firm such as Bright Trading, Echotrading , Lieber & Weisman etc) that enable you to short a stock on a downtick, which is not allowed when trading the stock directly... the pre-commission return profile of a bullet / conversion is identical to that of shorting a stock... the advantage lies in a more timely fill, particularly on a parabolic dump in the stock price...

With regards to going with the flow, this refers to initiating and running stock positions which are not in conflict with the movement of the futures... the S&P futures are usually used as the gauge, unless one is specifically trading technology stocks (in which case the nasdaq futures may be better)...

 

I don't know any Nasdaq scalpers (trading liquid, market stocks) who make consistent money after commissions. Sure, they put up $3-5K days on 400K shares and if they have one down (or even flat) day, they give up all of their gains from the prior days. The Naz traders who are doing well are trading illiquid, wider spread stocks for smaller size.

 

Yes, for scalping, Nasdaq is most certainly the mother of all cowboy markets... NYSE gives purer moves through a centralised marketplace vs. crazy outside prints on Nasdaq... Nasdaq is ok for intraday swings though...

 

I used to deride scalpers as brainless video game players who just gave all thier money away in commissions. But one of the strategies I was working on gradually morphed to fast in and out trades with the futures and before I knew it I was a scalper too. I've been profitable 4 out of 5 days since May doing this, and the losing days are closer to break even than big losers.

I agree 100% with what Jonathan said and I trade the same way. NYSE, same few stocks every day, go with the futures, get out immediately when you are wrong. My average daily volume has tripled and I usually pay half my gains in commissions and bullets, but I'm taking home cash every week.

Corey

 

How much profit per share is considered scalping?I trade Nasdaq only(stocks like KLAC and QLGC,etc.),10-20 trades a day,average profit per share target of 30-40 cents.Would that be considered scalping?If not,what does one consider scalping to be?

 

"Scalping" is a subjective term. Different people define it differently.

 

I've seen lots of people say that scalping works on NYSE and not the NASDAQ. Anybody care to explain why ?