scalping lu/nt/ect...

[newguy1]

How many people here have ever tried scalping lu, nt, or anything that moves in a 1 cent range?

A lot of people have approached me with "its not possible" and " you can't make much money" and "its too risky" or some xyz reason why it simply, flat out cannot work.

And i'm not talking about rebate trading. Just a clean 1 penny trade.

How many have ever tried this, even for just 1 day?

 

[coolweb]

I believe mksummary makes good money doing that.

I'm sure you need to be an expert and lots of experience in that type of scalping method to make good money.

Jumping right in will make you jackshit

 

[newguy1]

Thats an interesting point of view. Because the way I see it, HLV is pretty much banking on the fact that their new, inexperienced prop traders will at least be break even doing just that...scalping for a penny.

I saw early success with it. In some ways, I think it is easier than momo. In other ways, its a bit more difficult if you don't have someone to explain to you some non-obvious issues (like order routing...for a newb, its all new, and its not obvious).

 

[Htrader]

Quote from newguy1:

How many people here have ever tried scalping lu, nt, or anything that moves in a 1 cent range?

A lot of people have approached me with "its not possible" and " you can't make much money" and "its too risky" or some xyz reason why it simply, flat out cannot work.

And i'm not talking about rebate trading. Just a clean 1 penny trade.

How many have ever tried this, even for just 1 day?

Its really a chicken/egg situation. In order to scalp 1 penny successfully, you need ultra-low commissions. But the only way to get ultra-low commissions is to do alot of volume. But you can't do alot of volume without having experience, which means you need to trade alot, which of course takes ultra-low commissions.

 

[newguy1]

hm...I thought that before too. And its true. You really can't get commish that averages out to be .0002 per share without volume and experience IF you go to your standard shop. Maybe you could find .002 or .001, but not .0002.

But then again, there are those places that offer rock-bottom commish for inexperienced prop traders with no cap down....ect,...

Some people think its a scam, others obviously don't. I guess its anyone's call.

The whole chicken/egg thing is something I've thought about before, and kind of explained all the negative criticism I received about scalping lu: most people simply can't do it because of the commish problem, nor would these people want to when they could just momo trade something.

Quote from Htrader:

Its really a chicken/egg situation. In order to scalp 1 penny successfully, you need ultra-low commissions. But the only way to get ultra-low commissions is to do alot of volume. But you can't do alot of volume without having experience, which means you need to trade alot, which of course takes ultra-low commissions.

 

[Schaefer]

Quote from newguy1:

Thats an interesting point of view. Because the way I see it, HLV is pretty much banking on the fact that their new, inexperienced prop traders will at least be break even doing just that...scalping for a penny.

I saw early success with it. In some ways, I think it is easier than momo. In other ways, its a bit more difficult if you don't have someone to explain to you some non-obvious issues (like order routing...for a newb, its all new, and its not obvious).

Using new inexperienced prop traders as cannon fodders to generate huge volumes. It makes sense.

Happy trading

 

[piggie]

Quote from coolweb:

I believe mksummary makes good money doing that.

I remember mksummny posted that he does get rebates from trading LU. This does not mean he does not scalp at the same time. Just want to point out that a portion of his profit on LU is from rebates. mksummny is an exceptional trader in any case.

 

[mksummny]

getting rebates on listed stocks is impossible now. the only ECN rebating is TRACK and nobody is using their system to do it. INET does provide a small rebate but none to justify trading it just for that reason. You can make a living scalping for a penny on this stock and many others. I have approached this subject before on my posts.
Thanks to Jeff M. for the link to the thread.

yes you need very low commisions to do this type of trading. It does require alot of volume.