Scalping
- Thread starter arzoo
- Start date
I think Nasdaq scalping has been getting so tough because of all the program trading going on in them -- at least the larger volume nazdaq stocks. I also think they trade a lot more choppy than NY stocks. However if you are able to weed the noise out there is still good moves in naz stocks. Someone named Vinny1 has posted some good results with scalping naz stocks.
Forget the numbers....can anyone give us some ideas of good scalping setups?? I'll start with this one: On listed, the specialist spreads the stock way up or way down in the middle of the day (could be news or just a buyer/seller coming in). Then you either buy it or short it. Take your chances - sometimes, you can get smoked really bad and lose a $1 or worse. Whether to do these or not will come from experience...but once you figured out how/when to do them, the probability of it being a profitable trade becomes over 50%. If you're wrong...get ready for a reaming like you've never felt.
NAS stocks tend to have more movement and good scalping opportunities.
Dat-NYC
that's why so many traders have left the NASD and sought out safer shores with Listed (i.e. NYSE), only to post discussion threads on "hating Specialists". Go figure.
I applaud your math on the earlier comments on this thread. those parameters make the objective of scalping .10 - .15 from stocks logical and believable..
For that reason, you'd get better and smoother price transitions from level II trading of high volume / active NASD stocks, more so that the listed stocks. If you pay same commission for the NYSE vs. NASD, then they're equal risk. If you pay ECN fees and the net roundtrip cost for NASD exceeds NYSE, then perhaps the risk parameters aren't worth it.
Observation and good papertrading will allow you to get actual confirmed estimates on the trading theorum listed above. Its essentially the same defined Momemtum strategy from a few years ago, just updated to current conditions.
that's why so many traders have left the NASD and sought out safer shores with Listed (i.e. NYSE), only to post discussion threads on "hating Specialists". Go figure.
I applaud your math on the earlier comments on this thread. those parameters make the objective of scalping .10 - .15 from stocks logical and believable..
For that reason, you'd get better and smoother price transitions from level II trading of high volume / active NASD stocks, more so that the listed stocks. If you pay same commission for the NYSE vs. NASD, then they're equal risk. If you pay ECN fees and the net roundtrip cost for NASD exceeds NYSE, then perhaps the risk parameters aren't worth it.
Observation and good papertrading will allow you to get actual confirmed estimates on the trading theorum listed above. Its essentially the same defined Momemtum strategy from a few years ago, just updated to current conditions.
I dont know about all that...all Im looking for is some help with those scalping setups. Seems nobody wants to share. I'll share another one: A strong stock, big offer comes in....the size steps down a couple ticks...and then it gets lifted. If you can get in when the offer gest lifted, it will usually go up a few cetns..especially if the stock is strong that day. The key is knowing when to buy...cause if you just put a buy-stop at the offer (where the size is), you might buy it at the wrng time because some idiot NX's the offer and fills the stops, but not enough to lift the entire offer. Again....experience helps. Anyone else?
From the listed traders I have spoke to recently who scalp a lot of times it is as simple as trading off of the futures movement with liquid stocks. They trade stocks that have a high correlation with the indices. Also look for some short term support levels and resistance levels to trade off of to increase the odds of your trade. You will take some small losers or small winners of say 3 or 4 cents, but at least you are in it for when you get the 30 cent moves. A lot of times it is just being in the trade in case it goes or getting out for a small winner or loser if it does not take off. You need to recognize when the volume starts to dry up and stop trading so you don't churn yourself to death. When you get your volume up your commission rates come down too which makes trading this way much more viable.