Scalping LU...

Quote from telozo:

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.
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Looks easy when you're just watching the stock with no real money on the line huh?
See how it feels dumping 10,000 shares on a penny stock and there's no guarantee you can sell all of it for a penny loss if it starts tanking
 
Quote from stock777:

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.
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(this quote is about the funniest thing I have heard all day.....)

In any event, its tougher to scalp stocks like LU or DYN, etc. There are so many people lined up on both sides, its hard to tell the direction at any given moment. Even if the ask appears to be getting thinner and bid stronger, there are no guarantees.

Bottom line, to buy 10000 shares, you most certainly have to pay the asking price. If you didnt, most likely this is a good indication that the price is moving down and will do so very quickly against you, now you will be in the whole a penny and lose another penny if you want to stop yourself out.

I would first try doing this after really getting to know the stock, just dont take the plunge.....that only works on commercials. Watch the tape very closely and see how the bid/ask reacts to bigger block fills. This seems to help me on EMC........

BTW, it much easer in thought, than in practice. Try it for a few days and see.
 
Do not make this mistake. Most lay people and morons will come in after dinner time....not following the market all day long....they will see some stock up XX amount of points, or see the range of the day between 5.25 - 5.95......they will say, man you could have bought that thing for $5.25 in the morning and sold it by the end of the day for some decent change.....

Obviously we know it does not work like this. Trading is an art that takes place second by second, tick by tick.....A freakin chimpanzee can be a genius in hindsight. THose that can and do in the present are truly the elite ones.
 
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