So I got a job at a prop firm: they want me to scalp stocks on NYSE.

[bbot23]

I've been at this prop firm for a week now and it's my first time day trading at all. Here is some basic information:

-They trade NYSE stocks
-They use Sterling software
-I can only trade 100 shares per stock at a time (for the first 2-3 weeks, but then it quickly moves up to 300, 500, and a thousand if I don't lose too much money consistently)
-They want me to trade stocks with over 1M volume, less than 20 cents range, less than 20$/share, and low volatility. They recommend finviz.com to screen.
-They expect me to have over 200 executions a day for now, eventually around a thousand or more.
-They tell me to use minimal technical analysis; they want heavy scalping.
-They don't want me to take more than a 3 cent loss; otherwise I need to provide an explanation

That's the gist of it. I know the basics of day trading and scalping, but I can't say I know what kind of approach to take with them.

For one, how does someone make money with over 500 trades a day? Or what about the whole deal with NYSE and specialists? I keep hearing on these forums and elsewhere that Specialists will kill scalpers.

Anyway, basically I just wanna know what kind of approach some of you veterans would take, given the above constraints. You are a scalper, with potentially a 500k-2million dollar account. What would you look for? How does one "scalp" in such situations? Do you know of any resources I can look at/read to help me?

Thanks in advance, it's my first post and so far I'm liking the T2W. If you need any more info in detail, let me know.

 

[dealer911]

Sounds like a very strange set up bbot23 - did you have to put some of your own capital down ? - Seems they want you to put through alot of volume so they must be making profits from your round turns - probably doesnt matter to them if you make money or not! - If they have you doing 200- 500 trades today even if you break even they will still be raking it in! - I think this deal sounds a bit suspect to me.. However to generate that number of trades you are going to have to work off short timeframes and look for set ups - I am not a technical trader myself so cant really advice - I would say I have never heard of a prop trading firm that just gives you a pile of money and says "trade loads" I just hope you didnt have to put your own capital down!

 

[TRADEFUTURES]

I've been at this prop firm for a week now and it's my first time day trading at all. Here is some basic information:

-They trade NYSE stocks
-They use Sterling software
-I can only trade 100 shares per stock at a time (for the first 2-3 weeks, but then it quickly moves up to 300, 500, and a thousand if I don't lose too much money consistently)
-They want me to trade stocks with over 1M volume, less than 20 cents range, less than 20$/share, and low volatility. They recommend finviz.com to screen.
-They expect me to have over 200 executions a day for now, eventually around a thousand or more.
-They tell me to use minimal technical analysis; they want heavy scalping.
-They don't want me to take more than a 3 cent loss; otherwise I need to provide an explanation

That's the gist of it. I know the basics of day trading and scalping, but I can't say I know what kind of approach to take with them.

For one, how does someone make money with over 500 trades a day? Or what about the whole deal with NYSE and specialists? I keep hearing on these forums and elsewhere that Specialists will kill scalpers.

Anyway, basically I just wanna know what kind of approach some of you veterans would take, given the above constraints. You are a scalper, with potentially a 500k-2million dollar account. What would you look for? How does one "scalp" in such situations? Do you know of any resources I can look at/read to help me?

Thanks in advance, it's my first post and so far I'm liking the T2W. If you need any more info in detail, let me know.

Sounds like a f**king sweat shop. If I were you, i'd run like gump!

 

[DionysusToast]

500 trades a day? Doesn't that mean you'll be doing at least 1 a minute?

It's a different world, eh?

Take the job & sue them for the repetetive strain injury you get.

 

[Black Swan]

Do you get a "job" at a prop shop? Fascinating that you have no idea as to how to trade, it's your first day there and you arrive at a suite of forums to ask for advice...hat doffed for blagging the position...

 

[bbot23]

500 trades/day is an advertised exaggeration by them I guess. According to the floor manager, the average time that the team holds their positions for is around 5 minutes. But I'm guessing they trade more than one stock at a time. Also, I have definitely seen more than one trader on the floor that uses extensive TA to trade. They promote scalping, but don't care what it is as long as you make money.

It's not a sweat shop, and I didn't have to put any money in. It's just one of the many prop firms that advertise and ask for an educated individual that's committed to trading. And they offered a 2-week training period, 6 hours a day, knowing that most of us would not stay. They keep reminding us the usual: that it's difficult to make money in trading, that we can't expect to make money right away, that we should treat this as any other skill that requires extensive experience to deliver.

I'm just asking for advice on scalping. Their training program is lacking, and I feel like getting a different perspective. For example, should I focus on learning TA, or learn to read the time and sales window? Or Level-2 window? Anything that LOOKS like advice is welcome...