SCALPERS: Criteria for cutting losses / profit-taking
- Thread starter arzoo
- Start date
Well, most of you are equity traders and because of decimalization, the bid/ask spread has reasonably decreased to an unreasonable level to call it a scalp.
I guess the only "true" or "pure" scalpers only exist in the floor as locals. All the rest of those out of the floor are just intraday-swing or momentum day traders.
The term scalper does sound cool than calling yourself a momentum trader. I can just imagine a conversation at a bar like:
"Hey what do you do?"
"I'm a trader"
"How do you trade?"
"I'm a momentum trader" or "I'm a scalper"
Calling or referring to yourself a scalper does sound like you're deep inside the business, doing something casual traders can't do. Momentum trader is kinda corny, it's like saying, "I'm a trend-follower." and getting a response like, "So you know Waxie?"
I guess the only "true" or "pure" scalpers only exist in the floor as locals. All the rest of those out of the floor are just intraday-swing or momentum day traders.
The term scalper does sound cool than calling yourself a momentum trader. I can just imagine a conversation at a bar like:
"Hey what do you do?"
"I'm a trader"
"How do you trade?"
"I'm a momentum trader" or "I'm a scalper"
Calling or referring to yourself a scalper does sound like you're deep inside the business, doing something casual traders can't do. Momentum trader is kinda corny, it's like saying, "I'm a trend-follower." and getting a response like, "So you know Waxie?"
nope. nothing doing.
scalping - today - is a highly active style of trading that takes advantage of the minor price fluctuations that occur from moment to moment. highly skillful shit. not for the faint of heart.
1 point moves simply do not occur frequently enough for it be considered a scalp. SIMPLE. end of discussion.
Capturing a move means following a trend ie. momentum. Scalpers don't buy and hope the stock will "move"! They buy and sell trying to profit from playing the bid-ask spread. They do not need the stock to "move" necessarily. I suggest that instead of insulting others and making yourself look like a fool in the process, you learn what scalping actually is vs. what you think it is and proceed to make an intelligent comment.
As I wrote in a previous post, there are momentum scalpers and specialist (or bid/ask) scalpers. I know exactly what I'm talking about. The only reason I insult daniel_m is because he comes off as a pompous know-it-all and we trade barbs all the time. For your info, momentum scalpers look to scalp a move. If the stock isn't moving, then you don't buy it. You only reason you'd buy a stock in anticipation of a move is if it's consolidating before a possible breakout. The charts, moving averages and futures would give you clues for this. Pay attention and I'll teach you something.
I see what you are saying, we are not arguing about the same point then. What you call scalper refers to both momentum and bid/ask. What I call scalpers is the guy that tries to buy at the bid and sell at the offering, the bid/ask scalper. The bid/ask scalper doesn't need the stock to move at all...he just needs people to hit the bids and lift the offers thus letting him pocket the spread. That's why a 1pt scalp seemed unlikely at first when I read your post. Do you agree with this?