Quote from nugundam:
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Well, part of the reason I would guess scalpers are not so favored would be the fact that they hinder the price action movement. If you bought a stock at a specific price and you decided to sell it 10 seconds later for a 5 penny profit you obviously are slowing down the stocks momentum in a way even though it would depend on the volume but nonetheless you have an effect on it no matter how small. Its natural that the longer term trader would be against the scalper because in essence he/she is "blocking his trade". Rather than letting say the stock run 50 pennies to a dollar the scalper is ruining the longer term trader's goal. A clearer example would simply be if a stock had a spread of say 10 pennies. A scalper would probably try to narrow that spread to 9 pennies or less just to get out quicker than the rest.
In my opinion, the real reason why anyone would hate scalpers would simply because they envy them. Either by the fact that they do not have the same low cost structure as the scalper or they simply are not "wired" to act in such a manner. As some have already posted, you should not be bothered by what others think.
I would go so far as argue that true scalpers are less risky than their longer term counterparts. I have always been of the opinion that the longer you are in the market the more risk you are taking. Another way of looking at it would be to try to predict a stock's price in 1 hr as opposed to 1 min or 30 sec. or less. Think about it, the longer time frame the less predictable is the price. Less predictable = higher risk & reduced edge.
Lastly, i think most market makers/specialists can be considered scalpers by their very nature. Again, since their purpose is to provide a 2 sided market, they usually will buy the bid and sell the offer which is really a quick scalp in its finest form
JMHO
Scalpers and day traders are nuisance to the trading world. They hinder and obstruct price movement all the time. They are clogs in the wheel that is churning profits to some natural players, yet these sleazebags try to ooze out some of it.
Secondly, you should know that if you increase the time frames of your trading horizons volatility drops. An equity trade becomes lot less riskier. A stock may go down $1 in one session but in 2 days time it can regain a $2 price differential. You seem to get your ass backwards my friend. Read some books on how long term trades and holdings are more profitable. Risk of loss is reduced , because there is lot more probability, that it will work out in your favor.
Most day traders lose their entire accounts under 6 months, that is why SEC is very strict funding anything under $25,000. Got it?
