For all you Daytraders.

[Bogwaluth]

How many scalp? For pennies? How do you determine entry/exit?

How many trade the intraday trend or range?

I am trying to learn how to scalp/read the tape, but I am just churning, churning, churning.

What does a good scalper average? A penny per share traded? 2?

Any words of wisdom very much appreciated.

B

 

[Dogballoon]

I used to scalp, now I trade for .25 minimum, with my better trades running about 50 cents to a few points. Lot more calm and interesting in my opinion.

Here's an old thread that gives some insights into how to read the tape, at least how it used to be. Keep in mind it's likely to be less relevant in the future.

http://elitetrader.com/vb/showthread.php?s=&threadid=3282

Size no longer is as interesting to me as it used to be. I focus more on levels and the spread, even the way the ECNs move, to get a feel for hidden buyers/sellers. I also think that it's more rare to determine when the specialist is handling an order himself, and that it's enough to just see the pressure from other market participants.

In my opinion, I'd try to focus first on determining when one of those big .25-.50 moves is going ot happen via the charts, then learn to watch the tape when those significant setups appear. Be prepared to spend a few years letting it all sink in.