scalping

gordon_gekko · Mar 6, 2007

Hey guys,

My question is probably going to annoy the hell out of the experienced traders, but here it goes. I am new to scalping (very new) and would like to learn about it. If anyone has ANY advice (books I should read, websites I should visit, people I should see) on the topic that they wish to impart I would appreciate it immensely.

Also, I would be really grateful if anyone would be brave enough to take me under their wings and guide me through the world of scalping.

Cheers,
GG (UK)

PitBull · Mar 6, 2007

Gordon

Scalping what? Futures, stocks. May be able to help you if you know what instrument to trade.
If stocks, then I would suggest Vadym Graifer "Techniques of Tape Reading". His site is www.realitytrader.com

Good luck

charliechan · Mar 8, 2007

dont bother unless you have VERY low costs in place.

grinding the account is one major reason few succeed. taking quick and small profits may seem like an easy way to turn an average or losing system into a winning one, but the reality isnt so simple - especially in more liquid contracts.

Tubbs · Mar 9, 2007

From what I know scalping is impossible if not using professional kit - like a prop firm has or bank. Why do you think scalping is the best option. I agree it sounds attractive. I guess it's due to the risk level you want to take?

mofe2006 · Apr 29, 2007

Start here this is what scalping the DAX looks like:

http://www.youtube.com/profile?user=mofe2006

mofe2006 · May 1, 2007

Tubbs said:
From what I know scalping is impossible if not using professional kit - like a prop firm has or bank. Why do you think scalping is the best option. I agree it sounds attractive. I guess it's due to the risk level you want to take?

Definatly not possible without low commissions and a professional platform. But there are many firms that can provide both, even if you are not doing alot of volume. Its just knowing where to go.

If you want a list of frims that can provide you both PM me. I've been doing this a long time and my style of trading has always been based around low fees.

mofe2006 · May 2, 2007

Here is an example of how I trade

Here is an example of how I trade:

mofe2006 · May 3, 2007

I am posting a clip of my trading from when I put on a max position to 2 minutes before the ISM #. I shut down the recorder for the # becuase I had noticed that my CPU was getting pegged on high volume while I was recording trades. Then Esignal went down and I just called it quits for the day.

Rarely do I put on a max position so I thought this would be a good clip to show. I will post a video with an explenation for the trade and why I was willing to put on max size later.

Here is the link:

alexander · May 5, 2007

gordon_gekko said:
Hey guys,

My question is probably going to annoy the hell out of the experienced traders, but here it goes. I am new to scalping (very new) and would like to learn about it.
GG (UK)

Don't do it unless you have a seat at the exchange or you are a floor trader in an open outcry market. Bid/ask spread is the enemy of scalpers and the cause of failure. Also one bad trade can erase erase months of profitable trading.

Order book scalping may offer some possibilities but I'm not experienced with that style.

Alex

new_trader · May 5, 2007

alexander said:
Don't do it unless you have a seat at the exchange or you are a floor trader in an open outcry market. Bid/ask spread is the enemy of scalpers and the cause of failure. Also one bad trade can erase erase months of profitable trading.

Order book scalping may offer some possibilities but I'm not experienced with that style.

Alex

Alex,

How did you arrive at the above conclusion? Have you watched the videos of mofe2006 trades? If you keep tight stops I don't see how 1 trade can erase months of profitable trading.

mofe2006 · May 6, 2007

alexander said:
Don't do it unless you have a seat at the exchange or you are a floor trader in an open outcry market. Bid/ask spread is the enemy of scalpers and the cause of failure. Also one bad trade can erase erase months of profitable trading.

Order book scalping may offer some possibilities but I'm not experienced with that style.

Alex

I'm bidding or offering probably 70% of the time, to effectivly scalping you must be buying the bid and selling offer. You must learn to use limit orders. Market orders are used mostly to add to winners and dump losers.

The only way a bad trade can ruin your month is if you add to a loser and continue to let it run against once you no longer have a valid reason to be in the trade and you end up HOPING for it to "come back".

new_trader · May 6, 2007

mofe2006 said:
I'm bidding or offering probably 70% of the time, to effectivly scalping you must be buying the bid and selling offer. You must learn to use limit orders. Market orders are used mostly to add to winners and dump losers.

The only way a bad trade can ruin your month is if you add to a loser and continue to let it run against once you no longer have a valid reason to be in the trade and you end up HOPING for it to "come back".

From what I've seen of your videos you appear to cut losses very quickly and jump into the next trade...almost robotic. Superb trading.

grantx · May 6, 2007

Mofe,

Maybe you could clarify a couple of things.

Assume the market is bid 99 – 100 offered and you are looking to go long. Will you only take that position if you can open at 99 (via a limit order, for example)? What percentage of trades could one expect to be filled on this basis?

An obvious point is that a successful fill will be achieved at 99 on a downtick but this then becomes a fill on the offer.

Any comments greatly appreciated.

Grant.

mofe2006 · May 6, 2007

generally I will have the bid resting, I don't just see 99 bid 00 offfer and say ok what do i want to do. If i'm just looking for a bounce I will most likely pull the bid if I don't get filled. If I think we are in a trending mode I will go to the market and lift the offer. I don't care if my bid gets traded through on a down tick, the fact remains that I have one more tick of leeway by getting filled on the bid rather then taking the offer this may provide me with an addition 30 seconds to evlauate whether or not I want to stay in the trade. Make sence?

mofe2006 · May 6, 2007

new_trader said:
From what I've seen of your videos you appear to cut losses very quickly and jump into the next trade...almost robotic. Superb trading.

Thanks,

Thats how it needs to be if you are going to scalp. Discipline is everything.

grantx · May 6, 2007

Mofe,

That's clear. Thanks for the info. Seperately, and assuming you are a US resident, why do you trade the DAX as opposed to the US indices?

Grant.

mofe2006 · May 6, 2007

More volatility, and I want to be where most people are not.

mofe2006 · May 6, 2007

I like the large tick size as well.

grantx · May 6, 2007

Mofe,

Can't argue with you on those points.

Good luck.

Grant.

laptop1 · May 6, 2007

Mofe

Have you traded ER2.plenty of volatility for scalps, its like the s&p on speed

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