A Question for Scalpers

Quote from FaderTrader:

You've never seen anything gap 30/50 cents? Check out SUN, AHC, PD... I make all my money on being on the right side of these gaps and getting out when there's no catalyst (safety).
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Looking at the past week, i haven't seen anything like it. Seems like they are pretty liquid actually, I'd trade them.

Sure there are gaps on the open.

But most day-traders do not hold positions overnight. So it is irrelevant.

It is a risk we all take though. We have to deal with it, if we don't, we will fail if we can't accept it.
 
Quote from Steelhead:

FT,
yes these events happen. its part of the job.
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Good - now tell me why scalping is assumed to be a low-volatility strategy then?

Or will you cede that it is just a mechanism put in place by trading firms to keep the BP low and the commissions high for young traders to stupid to realize what they are doing?
 
Quote from JMowery1987:

Looking at the past week, i haven't seen anything like it. Seems like they are pretty liquid actually, I'd trade them.

Sure there are gaps on the open.

But most day-traders do not hold positions overnight. So it is irrelevant.

It is a risk we all take though. We have to deal with it, if we don't, we will fail if we can't accept it.
More...

Good luck - trying hitting out of AHC when anything 2000+ comes onto the offer.

Better hurry though, they are about to do a 3/1 split.
 
Quote from FaderTrader:

Good - now tell me why scalping is assumed to be a low-volatility strategy then?

Or will you cede that it is just a mechanism put in place by trading firms to keep the BP low and the commissions high for young traders to stupid to realize what they are doing?
More...

Low-volatility strategy?

I don't know, I don't scalp low-volatility stocks, someone else would have to take that one again.
 
Low volatility meaning that consistency of returns - scalping day in and day out.

My argument is that it can't work.

To be clear - I take short-term directional positions, but I never get into something unless I have a directional bias.

I'm defining a scalper as one who has no directional bias aside from maybe some order flow used as safety.
 
Quote from FaderTrader:

Low volatility meaning that consistency of returns - scalping day in and day out.

My argument is that it can't work.

To be clear - I take short-term directional positions, but I never get into something unless I have a directional bias.

I'm defining a scalper as one who has no directional bias aside from maybe some order flow used as safety.
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I don't even know how to use order-flow to my advantage. I use support and resistance to determine a bias as to where the prices might go.

Maybe I'm not in this category of scalping then.

In that case, I'm shutting up :D I missed a lot of good moves on AAPL chatting it up :p
 
Quote from Ripley:

When I used to scalp, my commissions were 60% of my Net Losses.
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Hey Ripley, how's the trading going, haven't talked to you for awhile.

And yeah, 60% of your losses from commissions, that is where commissions will not allow you to be successful no matter how good at scalping you are.
 
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