Serious question about scalping please

[kitty1996]

I just wonder if anyone in this group has successful experience with scalping but with using only TWO TOOLS
(1)level 2
and (2)times and sales.


If you are this special type of scalper, can you please share how you utilize those two tools so successfully?


Thank you very much~:clover:

 

[moreagr]

I just wonder if anyone in this group has successful experience with scalping but with using only TWO TOOLS
(1)level 2
and (2)times and sales.


If you are this special type of scalper, can you please share how you utilize those two tools so successfully?


Thank you very much~:clover:

Hi kitty,

many on here dont use it anymore...

I would personally say no if you were to use them alone. the market is very fragmented and algos are going off back and forth. its very hard to see with those 2 tools alone to see a big buyer because they hide orders and try to slice and dice orders in small lots . you have to use all the tools avaiable be it charts, index, fundamentals, economic figures. perhaps in the early 90's or 80's it was easier but now with computers and tens of thousands of traders or maybe hundreds of thounsands it makes things much more difficult.

use all tools not just L2 and its also depends which stocks or instruments you are looking at. if it is very liquid its even more difficult. like CSCO GE QQQQ

this is only my experience. but I do use it but I dont bank on it as a tell all. try to start out looking at the big picture first. pre market news sectors and fundamentals technicals etc.

 

[kitty1996]

hi moreagr...
thank you for your reply.

the reason i am asking this question is because most prop firms out there train their traders this way.
and yes, even in 2008.

prop traders who are scalping use charts ...but not as main tools ...surprisingly L2 and times and sales are the main tools.

you are an independent trader so it's different, you have freedom...

prop traders work for a prop firm... the firms' rules make it impossible to trade based on charts/fundamentals as the main tools... the L2& times/sales are the main tools. charts are to use as support system only, forget about fundamentals, prop traders don't care about fundamentals.

about L2 ...
yes, i do realize of manipulation, it's very hard to tell what is the truth. that's why i am very curious about how a scalper can successfully utilize L2 & time&sales.

Hi kitty,

many on here dont use it anymore...

I would personally say no if you were to use them alone. the market is very fragmented and algos are going off back and forth. its very hard to see with those 2 tools alone to see a big buyer because they hide orders and try to slice and dice orders in small lots . you have to use all the tools avaiable be it charts, index, fundamentals, economic figures. perhaps in the early 90's or 80's it was easier but now with computers and tens of thousands of traders or maybe hundreds of thounsands it makes things much more difficult.

use all tools not just L2 and its also depends which stocks or instruments you are looking at. if it is very liquid its even more difficult. like CSCO GE QQQQ

this is only my experience. but I do use it but I dont bank on it as a tell all. try to start out looking at the big picture first. pre market news sectors and fundamentals technicals etc.

 

[moreagr]

yes I trade from home and am independent. Well maybe for them they may use fancy orders or have better software or data not sure?? but I do use it but not by its self. its one tool out of many. I want as much information at my disposal be it L2 charts funds techs, news etc. that is if I can handle all the info somtimes I get info overload.

I just have not gotten the hang of if as a reliable tool as a single tool.

 

[kitty1996]

i know what you are saying.
i am surprised to find that out myself too.

but please don't misunderstanding me, prop traders do use charts... however, i must say time&sales and L2 are the main tools. charts are only to help...~

thank you & best wishes:clover:

yes I trade from home and am independent. Well maybe for them they may use fancy orders or have better software or data not sure?? but I do use it but not by its self. its one tool out of many. I want as much information at my disposal be it L2 charts funds techs, news etc. that is if I can handle all the info somtimes I get info overload.

I just have not gotten the hang of if as a reliable tool as a single tool.

 

[Trader333]

In my view home based traders cannot use this approach to make significant profits. The reason is that Prop traders are using size to make relatively small incremental profits. This is just not a good model for us home based traders and we need to use an approach that the institutions are not really interested in but which suits our needs. That is why on this forum you will see a lot of talk about approaches that do not use Level 2 at all. There was a time when almost all of us did use Level 2 but this was mainly used to reduce risk at market entry. The new trading models advocated by Grey1 mean that we don't need to do this any more. Part of this is because by using a basket trading approach the entry is less critical in terms of saving a couple of cents. This is because we know that as long as we are using a top down approach and that we have correctly selected stocks that will move in the anticipated direction then the whole basket will make an overall profit even if some individual stocks move in the opposite direction.


Paul

 

[kitty1996]

hi paul...
i didnot know this forum there are no prop traders thus no one knows about scalping using L2 & time&sales.
thank you for clarify.

In my view home based traders cannot use this approach to make significant profits. The reason is that Prop traders are using size to make relatively small incremental profits. This is just not a good model for us home based traders and we need to use an approach that the institutions are not really interested in but which suits our needs. That is why on this forum you will see a lot of talk about approaches that do not use Level 2 at all. There was a time when almost all of us did use Level 2 but this was mainly used to reduce risk at market entry. The new trading models advocated by Grey1 mean that we don't need to do this any more. Part of this is because by using a basket trading approach the entry is less critical in terms of saving a couple of cents. This is because we know that as long as we are using a top down approach and that we have correctly selected stocks that will move in the anticipated direction then the whole basket will make an overall profit even if some individual stocks move in the opposite direction.


Paul

 

[Grey1]

In my view home based traders cannot use this approach to make significant profits. The reason is that Prop traders are using size to make relatively small incremental profits. This is just not a good model for us home based traders and we need to use an approach that the institutions are not really interested in but which suits our needs. That is why on this forum you will see a lot of talk about approaches that do not use Level 2 at all. There was a time when almost all of us did use Level 2 but this was mainly used to reduce risk at market entry. The new trading models advocated by Grey1 mean that we don't need to do this any more. Part of this is because by using a basket trading approach the entry is less critical in terms of saving a couple of cents. This is because we know that as long as we are using a top down approach and that we have correctly selected stocks that will move in the anticipated direction then the whole basket will make an overall profit even if some individual stocks move in the opposite direction.


Paul

Good post Paul


Before decimalization L2 would give you the edge ,,,Not any more.

Ofcourse in a very low volume low volatile market you might be able to have a better entry ( years ago this was the case ) but certainly not on this day and age where 50points on DOW is just a noise .
Also Program trades have become much more sophisticated to fake their intention which makes the task even harder to read into their trading pattern.


Kitty ,,if some of told you any different get him to a chatroom and ask him to show you LIVE,,,


Grey1

 

[kitty1996]

thank you kindly to you grey1. i know you are doing great work here.
i know scalping is hard this day & age. it's why i am so surprised most prop firms still want the traders to trade this way. i find it extremely hard to do. it's why i come here to ask if anyone is a prop trader & can do it successfully by using L2 and times/sales.
i'll study your posts.... i am VERY new so it would take a long time to understand it all. thank you to you all. i am glad to be a part of this intelligent group of traders. keep up the great work:clover:

Good post Paul


Before decimalization L2 would give you the edge ,,,Not any more.

Ofcourse in a very low volume low volatile market you might be able to have a better entry ( years ago this was the case ) but certainly not on this day and age where 50points on DOW is just a noise .
Also Program trades have become much more sophisticated to fake their intention which makes the task even harder to read into their trading pattern.


Kitty ,,if some of told you any different get him to a chatroom and ask him to show you LIVE,,,


Grey1

 

[kwilo]

On the subject of scalping does anyone know if the method using the macci indicator, which was outlined in Grey 1's recent webinair, is described anywhere in this forum.