Why scalping beats any other trading style

[nzbryant]

Quote from jack hershey:


You queried maxpi who said something extremely important.

I'm not maxpi and many people (See kiwitrader's recent assessment) do not like my responses. Ignore me if you wish.

The market is your partner and it is always informing you. nothing it says may be wasted or considered unimportant.

You may simply cast aside what other traders use as rules or what you hear is right or wrong to follow.

Any good method of trading is based upon one thing only. Trading is done in NOW and the market keeps moving by flowing continually and the market does not jump around.

......
Animals look at their world from the vantagepoint of beeing able to survive by the use of their senses. As they sit they either see that things are the same or they are changing if they do change. They are not patient really. what they are is keenly sensitive to opportunies that come from the "sameness" becoming "different" or something is missing from the picture.

They see grazing and drinking and movement across the land as "sameness". They see normal behavior as "sameness". They see that they must continue to do what they are doing during these periods. For me "sameness" in the markets and on the part of other traders that I "SEE" , simply means the day is passing and I am making money as price moves, trades are filled for other traders as they go about their business.
....
...
All a trader has for making money is the PRESENT. You can see price and volume in containers (on three levels as channels and Gaussians) in the present and active traders tell you the near future all the time as they build DOM walls that are where price reverses in a few minutes or a bunch of seconds as the wall comes to the BBid/BAsk.

Jack - this is brilliant. If other people STILL dont get what you are on about, after this very clear and understandable post, they will never get it. The animal analogies make complete sense - watch, note differences, act. Watch your cat, or any other animal - they do this. Always with the goal of survival and enhancement of life. In trading it is the same, with the goals of survival and enhancement of wealth (being on the right side of the markets).

 

[cashmoney69]

When scalping is it best to trade a stock thats in a trend, or does it matter?..

Also I'd like to get into some scalping so I have two questions:

1. Is it REALLY possible to read the tape/ l2 (no wonder people switch to futures!) With black box trading..i hear people say that the l2/ tape is more noise than anything usefull.

2. That being said, are there any scalpers here that trade off tick charts, and/or 1 min charts?

thanks

cm

 

[RedDuke]

Quote from cashmoney69:

When scalping is it best to trade a stock thats in a trend, or does it matter?..

Also I'd like to get into some scalping so I have two questions:

1. Is it REALLY possible to read the tape/ l2 (no wonder people switch to futures!) With black box trading..i hear people say that the l2/ tape is more noise than anything usefull.

2. That being said, are there any scalpers here that trade off tick charts, and/or 1 min charts?

thanks

cm

I trade of volume charts. Very short term.

 

[mcichocki]

Quote from cashmoney69:

When scalping is it best to trade a stock thats in a trend, or does it matter?..

Also I'd like to get into some scalping so I have two questions:

1. Is it REALLY possible to read the tape/ l2 (no wonder people switch to futures!) With black box trading..i hear people say that the l2/ tape is more noise than anything usefull.

2. That being said, are there any scalpers here that trade off tick charts, and/or 1 min charts?

thanks

cm

I use tick charts if its rangebound chop.

If trending I use 1 or sometimes the 5 minute chart.

At times I do mix it up depending on action but those are my main timeframes I use.

 

[mcichocki]

Quote from RedDuke:

I trade of volume charts. Very short term.

Interesting, I'm gonna have to check that out too.
Any tips on some general frames of volume you use?

Thanks

 

[RedDuke]

Quote from mcichocki:

Interesting, I'm gonna have to check that out too.
Any tips on some general frames of volume you use?

Thanks

It is different for each market. For DAX I use 144 volume.

 

[jjf]

Quote from RedDuke:

I trade of volume charts. Very short term.

What size frame do you use for ES

 

[mcichocki]

Quote from RedDuke:

It is different for each market. For DAX I use 144 volume.

I'll use 144 tick in a rangebound day for the YM.

How do you find the volume different compared to the tick, big difference?

 

[RedDuke]

Quote from jjf:

What size frame do you use for ES

I do not trade ES right now. Though it is a market where I eventually want to be.

 

[RedDuke]

Quote from mcichocki:

I'll use 144 tick in a rangebound day for the YM.

How do you find the volume different compared to the tick, big difference?

Tick and Volume charts are very close. They both move only when something is going on, and are perfect to catch momentum.

I found volume charts to be easier to spot momentum since every bar represent constant # of contracts. With tick bar you can have several very large trades, but every one of them will add just 1 to count, where volume bars will create few bars thus highliting the momentum.