Scalping LU...

telozo · Mar 11, 2003

I've been thinking:

Is it possible to scalp LU for $0.01, using a fixed commision brokerage, like BrokerageAmerica, that charge you $5 for 10,000 or more, round turn.

So, you buy limit 1,000 shares @1.58 and sell limit @1.59:

$15,900-$5-$15,800-$5=$80, virtually risk free.

How does it sound?

telozo · Mar 11, 2003

I meant 10,000 not 1,000...

MondoTrader · Mar 11, 2003

sounds good but if you think its risk free think again.

MarathonTrading · Mar 11, 2003

think again and again

stock777 · Mar 11, 2003

You have discovered the hidden secret. Now they'll have to change the rules so you don't win all the money. Next time, don't post your amazing discoveries on a public board.

howardy2k · Mar 11, 2003

its not as ez as it seems. and for stocks like lu, i think u can do better scalping the naz

lindq · Mar 11, 2003

That $80. risk free profit will look pretty stupid when LU hits 1.25.

No such thing as risk free. Ever. Never.

prox · Mar 11, 2003

And do you even have a logical stop area?

It's very risky and a wonderful way to blow out your account. Have fun.

KavMan · Mar 11, 2003

Oh shit
The holy grail of trading

telozo · Mar 11, 2003

The idea that I have is based on the fact the it looks like LU is trading into 1cent ranges for varios periods of time, especially in the middle of the day. So you can try to get in and out fast. Of course if it drops 1cent you just close the trade, you don't wait for it to go to 1.25.

And by the way, I cannot trade this idea, because I am paying per share commission.