Scalping: Is this consider a qualilty method of trading?

[AnonymousTrader]

Quote from Mecro:



You do not understand what I am saying. If there are more GOOD scalpers, ones that do not constantly mess up trades, that's different. I'm dying for more of those. But when a short can't move more than 5 cents because all the newbies have no clue how and why the short steps, that is only bad. Barely anyone makes money, but everyone churns. Why would you want even more newbies into that equation.

More trader volume only gives more fresh meat for the specialist. Trader vs trader is really bad, only second to trader vs specialist.

Ok I see what you're saying.

But still - think about this - if this pattern continues, it becomes extra easy to make money - trade the range! If you know the stock wont go more than 5 cents because of the newbies, go against the trend at that point. And with bigger liquidity get on board with more shares - 5k, 10k etc. and just make the little trades.

Otherwise I have to agree with you - sometimes I am myself fed up with the nitwits that trade the market. So - to good trading

Cheers,

(AT)

 

[DaveN]

AT and Mecro,

Great points and observations! I find myself making exasperated statements at my monitors all day long. Things like, "Oh no, you FOOLS, don't start pounding it NOW, let it "breathe" and move a little more!!!!"

As long as the stock you're trading can handle the bigger size, then I completely agree about trader larger positions for smaller pieces.

 

[wercurna]

Quote from Mecro:



The point is that he asked "good scalper" not the best. You're giving him the yearly income of the number of scalpers that one can probably count on their two hands.

A good scalper can make like 50-70k a year. The problem is that what a good scalper can make has been getting lower and lower by the month.

The best guys simply have the experience to be the top dogs and pull in the big bucks you speak of. One of them sits right next to me and has been doing it for 4 years. I think as the average he makes about 250k a year, but it has been getting less and less every year.

Do you believe that the $50,000 $75,000 scalper will get better as he practice more and more and slowly do better as time progresses. I understand that Scalping has gotton harder and harder but i hope that there is a point where it stops getting harder and then with more and more practice and experience the profitability will increase for the ones that stay in the game,
At least that is what i hope

Only a question.

Not my intention to disagree at all.

 

[hayman]

I believe scalping has limited upside, as opposed to longer methods of trade, but has much limited downside risk. It is because of this latter item, that I scalp trade. It has gotten increasingly harder to scalp as this year has progressed, but I think it is directly related to decreased volume. My rule is high volume, great scalping territory. Low volume, bad scalping conditions.

 

[Mecro]

Quote from AnonymousTrader:



Ok I see what you're saying.

But still - think about this - if this pattern continues, it becomes extra easy to make money - trade the range! If you know the stock wont go more than 5 cents because of the newbies, go against the trend at that point. And with bigger liquidity get on board with more shares - 5k, 10k etc. and just make the little trades.

Otherwise I have to agree with you - sometimes I am myself fed up with the nitwits that trade the market. So - to good trading

Cheers,

(AT)

Yeah I wish it was that easy. It seems to work, until you get that one trade where you easily lose 20-30 cents. So you had like 20 trades of 5 cents average and then you give a whole load back cause of a short squeeze.

Now add commissions into the mix.

 

[Mecro]

Quote from wercurna:



Do you believe that the $50,000 $75,000 scalper will get better as he practice more and more and slowly do better as time progresses. I understand that Scalping has gotton harder and harder but i hope that there is a point where it stops getting harder and then with more and more practice and experience the profitability will increase for the ones that stay in the game,
At least that is what i hope

Only a question.

Not my intention to disagree at all.

Of course

The more experience you get, the better you will become.

But how much time do you have? Personally I'm out of time so I'm seriously questioning whether I can last unless the institutional fish makes a comeback very soon.