Too much "noise" on Naz market stocks (KLAC, QLGC, EBAY) characterized by ECNs popping in and out for size, whipsawing moves, etc. Unless your stops are pretty wide (i.e. 50 cents or more), you'll get tossed around and lose money on tickets. Listed stocks move more slowly and it's a little easier to filter out the noise since you're mainly dealing with the specialist.
Scalping
- Thread starter nwbprop
- Start date
Too much "noise" on Naz market stocks (KLAC, QLGC, EBAY) characterized by ECNs popping in and out for size, whipsawing moves, etc. Unless your stops are pretty wide (i.e. 50 cents or more), you'll get tossed around and lose money on tickets. Listed stocks move more slowly and it's a little easier to filter out the noise since you're mainly dealing with the specialist.
Unless you are on the wrong side.
30 or 40 Cents! You're a long term investor, dude.
Seriously though, it depends on where you get your
information. Personally, I wouldn't consider you a
scalper. I don't trade stocks, I trade the ES, but if a
1 cent move in a stock is considered a tick, then a
a 30 or 40 tick trade in the ES would be considered
a trade and not a scalp.
An ES scalp would probably be more like 4 or 5 ticks(IMHO)
So a stock scalp...4 or 5 cents?
Originally posted by Breakout
30 or 40 Cents! You're a long term investor, dude.
Seriously though, it depends on where you get your
information. Personally, I wouldn't consider you a
scalper. I don't trade stocks, I trade the ES, but if a
1 cent move in a stock is considered a tick, then a
a 30 or 40 tick trade in the ES would be considered
a trade and not a scalp.
An ES scalp would probably be more like 4 or 5 ticks(IMHO)
So a stock scalp...4 or 5 cents?
Well 1 contract of ES is 500 SPY.. 1 point on ES (4 ticks) is worth $50 which equates to 10 cents on 500 SPY... on a lower priced stock than SPY, 5 cents on 1000 shares would be about the same as 4 ticks on a contract of ES (5 cents on 2000 shares would be the same as 4 ticks on 2 ES contracts)... I would tend to agree with Breakout that 40 cents would be a bit on the high side for a stock scalp, but much depends upon how one defines a stock scalp...
Why Nyse over Nasdaq.
Nasdaq has few stocks over $20 per share.
With the advent of auto execution you can usually get a good fill.
If you learn how the specialist system works you can use it to your advantage.
ECNs are creating great opportunities in NYSE stocks on High Vol, High volatility days.
You can see the specialists book.
you have many sectors to choose from. (Nasdaq trading limits you to tech.)
Most traders I know that traded nasdaq 3 years ago have moved over to Nyse.
Nasdaq has few stocks over $20 per share.
With the advent of auto execution you can usually get a good fill.
If you learn how the specialist system works you can use it to your advantage.
ECNs are creating great opportunities in NYSE stocks on High Vol, High volatility days.
You can see the specialists book.
you have many sectors to choose from. (Nasdaq trading limits you to tech.)
Most traders I know that traded nasdaq 3 years ago have moved over to Nyse.