I scalp NYSE issues, my holding period is usually 1-3 mins and I am able to make 10k a month. Let me just say that it is a very intensive way to make a living. It requires you to be patient but constantly be paying 100% attention waiting for those exact setups. Good thing I am only 26 because I have youth on my side. As i get older and more experienced, I am sure I will move on to better ways to exploit the market, hopefully...
not another scalping thread......!
- Thread starter FredBloggs
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FredBloggs
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Quote from ER9:
Thats not what i just read. Sounded like a general rant that scalpers are failures that dont know how to trade or are just wannabe's with no idea what they are really doing chasing an illusion.
im not dissing you either...or those that dont understand a scalpers approach
sorry - i really am NOT an anti scalper. lets face it, they provide liquidity, so they are my friends, not my foes.
what i dont understand, and the reason for the thread, is why newbie RETAIL traders try to scalp - for the reasons it just looks easier to shorten the profit objective as maharas2 seems to agree. it seems this is done without consideration to the risk - and this isnt just price risk im talking about here.
as for the work hard thing that someone pointed out - about there always being someone else being able to go that extra mile - yes thats a valid point. im not denying that hard work has to be put in, just that FRANTIC hard work isnt vital to be successful.
FredBloggs
Guest
the best way to trade is the one that suits you. that may be scalping, or it may not be. an issue here is that it would be wrong to start scalping because it looks easy to shorten a profit objective when it isnt.
BSAM - how do i trade? well, i dont usually answer these sorts of questions, as i am a member of the ppt dont forget (
). seeing as you ask though...i make between 1-3 trades a day. mostly in the morning, usually done by 11:00 cst. i think overtrading is a serious issue for most and they dont realise it.
my holding time could be 3 sec to 20 min, but typically 10m. im typically looking for 5-20 ticks depending on conditions.
my trades are based of 3min to 30min charts. this is my typical scenario. nothing too rigid as i believe in dancing in tune with the market rather than trying to breakdance or do the funky chicken (although i do do this quite well it has been said!!) all the time when the market wants to do the tango or the waltz.
sometimes off 60min if i am trading a market isnt that liquid - in which case i will also be looking to hold the position - possibly for a number of days, but this is quite rare.
im not saying this is THE way to trade, just a way that seems to suit me and the markets. although the 3 sec thing may seem like a scalp, it isnt. im just taking money when its there.
LOL. I think anything under an hour is a scalp for you old timer. I can understand the fascination. When I started trading thats all anybody talked about. Level two and scalping. There were a bunch of books on the market about it. I started with ABWatley trying to scalp and the commisions were around $30 if I remember right. LOL. Talk about naive.
FredBloggs
Guest
rotflmao!! well i guess like beauty, its all in the eye of the beholder.
i dont have any label i apply to what i do. if anything im trying to get momentum (original or what!!)
perhaps defining what i mean by a scalp would help wouldnt it.
i mean people trying to catch the b/a spread, or just going for a tick or two, with decisions being made primarily off of the tape. i guess in fairness time of holding the position is irrelevant, as i know guys scalping cal spreads for a tick who can be holding for similar time frame to myself - but they are trading fixed income/low volatility products, where as i am going for higher volatility stuff - things like priority in an order queue and book and latency are not primary issues for me - they are secondary.
FredBloggs
Guest
easy - no offence, but this is exactly what i mean!!
I used to scalp Nasdaq pre-decimalization... it was very profitable but too much like hard work...
These days, I trade the eminis with very pleasing success, using a systematic intraday approach (not scalping)... it is so much more relaxing....
Having said that, it was my experience that scalping equities (when done properly) was amongst the most consistent income generators I had... but it was a lot of work and I got burnt out doing it... decimalization finally killed it anyway...
Just my 2 cents...
These days, I trade the eminis with very pleasing success, using a systematic intraday approach (not scalping)... it is so much more relaxing....
Having said that, it was my experience that scalping equities (when done properly) was amongst the most consistent income generators I had... but it was a lot of work and I got burnt out doing it... decimalization finally killed it anyway...
Just my 2 cents...