What would you do if you had a profitable system...

HolyGrail · Feb 13, 2007

A two cent move could be, and most likely IS a random event.

ElectricSavant · Feb 13, 2007

yes agreed....70 % of the time..

Quote from HolyGrail:

A two cent move could be, and most likely IS a random event.
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brokerboy · Feb 13, 2007

Quote from IronFist:

But the system only gave you one or two long or short signals per day, and each one was only good for about 2 cents per share? (assuming a $20-30 stock)

You can't really keep increasing your position size so that your 2 cents per share per day gain becomes enough to live off of, can you? Say you're buying $60k positions of a $21.80 stock. You make your 2 cents, and that's about $55 profit before commissions. You can't just jack it up to $600k positions and make $550 per day.

Would you:

a) Apply this system to more than one stock so your "one or two signals per day" become "one or two signals per day PER STOCK?"

b) Tinker with it to try and make it more profitable?

c) something else?

I'm just wondering. Say hypothetically this system causes you to enter and put a stop loss 2 cents below your entry price. Your target price is +2 cents. That's tight, and is a 1/1 P/L ratio, but you have a 70% success rate with your calls so it's ok. The +/- 2 cents comes because say this system picks up near the end of trends, and you need a tight stop in case you jump in right as it's reversing. Unless it's the beginning of a huge trend following a short choppy trend, but how often does that happen?
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This is quite the retarded chat. 3000 shares of stock is a lot easier to get out of then 30000 shares. So what if you use this style and the stock goes against you for 25 cents. A guy scalping for .02 cents on a 25 dollar stock canât take a hit like that. If youâre trading penny stocks with large volume my opinion would be different. You should be rebate trading on this style too.

dinoman · Feb 13, 2007

I would laugh all the way to the bank!

Get real!

IronFist · Feb 13, 2007

Quote from BostonKiller:

$550/day would equal making a 'conventional' salary of around $140000/year or so. Without sitting in the office 70 hours/week. I say, $550/day sounds pretty good.
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I said you can't just scale your position up to $60k... can you?

RiceRocket · Feb 14, 2007

First of all that is not a system. The only one that can consistently and profitably make money scalping 1-2 cents are the ecn's and market makers because they also get a cut of the commission and trade for free.

Just in slippage alone in the real world trading environment there's no way to keep your edge. Plus your commissions will eat you alive.

IronFist · Feb 14, 2007

Quote from RiceRocket:

First of all that is not a system. The only one that can consistently and profitably make money scalping 1-2 cents are the ecn's and market makers because they also get a cut of the commission and trade for free.

Just in slippage alone in the real world trading environment there's no way to keep your edge. Plus your commissions will eat you alive.
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I didn't ask if you think it's a valid system or not. I asked what you would do if you were in that situation (not that I am in that situation, but I was just wondering).

How could commissions eat you alive when you're making 1 or 2 trades per day? Assume for the sake of argument that you're using zecco.com or something then.