I see a lot of folks incorrectly using the terms scalping, scalp and scalper. These terms are correctly applied to people who are market makers trading for the bid/ask spread. No retail trader is effectively scalping from their personal computer. More correctly, when people say they are scalping, they actually mean they are short term day-trading.
Scalping
- Thread starter Buy1Sell2
- Start date
Robert Morse
Sponsor
Sorry, but I disagree. The term is appropriate if your intent is to buy/sell for a quick or small profit or for the rebates. It is a description of the strategy not the entity trading.
Bob
Bob
But many traders are being scalped, so the term might be scalpee.
While I agree with your definition, a couple of points:
-- the magic phrase now seems to be "tick-" scalping. I don't care for it, exactly, but it's safer in conversation. On the other hand, and to your point, those day-traders just can put themselves up to writing "I am a week-scalper." Meh. Not my thing.
-- BUT! I made my first solid trading dollars in scalping the bid-ask spread in equities -- totally retail at the time -- and still consider myself a scalper (though I haven't done this in years: my bad) in my flinty little heart-of-hearts.....
Food for thought, anyway.
Do not confuse people, please. Here is something to help - http://www.investopedia.com/terms/s/scalping.asp :
What is 'Scalping'
Scalping is a trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy place anywhere from 10 to a couple hundred trades in a single day in the belief that small moves in stock price are easier to catch than large ones; traders who implement this strategy are known as scalpers.
At some level you can use words to mean what you like. But I just googled scalping, and none of the top dozen or so links agree with you. This suggests you are in a minority with this opinion.
GAT
L
lovethetrade
Worthy discussion though, thanks for posting.
MattZ
Sponsor
Retail traders have the technology nowadays to execute while scalping. Advanced Algo traders can do it via automation and hosting. Lastly, where cost was an issue in the past for such strategies, a trader today can explore different memberships with the exchanges..if volume justifies it.
I agree.
There are many technically perfectly correct replies above, slightly dissenting from the OP's statement, but my perspective is instinctively fully with him, on this occasion: the forum is full of people misusing the word "scalping" (some even to the extent of discussing "scalping from 4-hour charts" and all this kind of nonsense).
It's highly unusual for retail traders to be scalping, and even though (as mentioned above) it's technically possible, these days, we all know perfectly well that the reality is that whenever the term's used here in a "retail trader" context, there's at least a 90% chance that it's being misused.