Best Stocks for Scalping

[stasbz]

Quote from Petrobras:

says me.

I am talking GENERAL about the liquidity and next trade. This is a scapling discussion. If you scalp your trading fast. your not waiting for a exchange to meet your needs on a big order of stock that is thinly traded and wait for someone to fill you. do you know anything about removing liquidity and removing it fast? it sounds like your used to placing limit orders with a broker and waiting to get filled. If SPY stock is trading 120.01 bid 120.02 offer [with 20,000 shares on each side..] Then if you sell 20,000 shares arca market. You will get filled at 120.01. How is this hard to understand? How is this illogical. I am being general about liquidity and getting filled to the penny in this case im talking SPY because it has this amount of depth all day long. Nothing else trading has this amount of depth with that high of a price. Thats why its the s&p500... people use this for day trades swing trades, hedging risk ect. This is why its high volume!


Now if you pull up exxon mobile and press sell 10,000 shares arca market you will NOT get filled at the bid price because the bid price you see will likely only have 500 shares for example. (unless there is someone there with 10k shares which is unlikley)

this is exactly my point about all stocks not trading the same. you can obviously get in and out of JPM chase on 100 shares easily, but at what point do you lose this ability? prob around 3k shares

What about comission? if you scalp you can take very small profit 2-3c. i have comission $0.55 for 100 stocks. what your comission?
is it possible to get profit by scalping with broker comission $0.55 for 100 stocks?

 

[stasbz]

Quote from stasbz:

What about comission? if you scalp you can take very small profit 2-3c. i have comission $0.55 for 100 stocks. what your comission?
is it possible to get profit by scalping with broker comission $0.55 for 100 stocks?

up

 

[stock777]

Quote from Petsamo:

What on earth does liquid mean?

I've dealt with all sorts of ETFs & stocks. They all seem to buy & sell just fine.

The only requirement I have is that their market cap needs to be one half million dollars or higher. That keeps the difference between the bid ask prices very small, like 1 penny apart.

1/2 million?? you must be kidding.;-)

 

[Davidee2]

Quote from stasbz:

my greetings.
experienced traders: could you give me advice what stocks best for scalping? (under scalping i mean - take some ticks, keep position from 2c to some miniutes depends of market)
we can divide stocks in four categories: volume, volatility, price, plain chart.
i think that best stocks for scalping - price $10-25, 50-75c range.
What about volume? it is better to trade high volume stocks or 1-3m?
what more difficult? it is better to start from low volume stocks?

Scalping is only possible with the most liquid of assets. Look for liquidity. Also understand more about brokers that allow scalping. Market Makers do not like scalpers. Market Makers are sort of like scalpers themselves and don't like it when someone does it to them.