Friday, April 20, 2007

Scalping for dimes

I continued my scalping today and I seemed to have come out ahead again. Maybe I am on to something here. When I was trying dummy trading I tried to stick to my stops and and follow the rules but ended up I get stopped quite often. My ability to wait and pick the best setups was weak. It was painful to wait for an hour or more for a setup and lose money on it. By scalping I feel I am able to trade freely again. I would be in trades and if it stalls I get out quickly. I am able to handle my losers better because most were between 1-5 cents. If I am right I get to make 10-20 cents which is a decent risk/reward ratio. I only have to keep my discipline in check and make sure I don't hold on to a loser for over 20 cents.

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1 comment:

Babak said...

Each trader has to find what works for them. It is a very personal and at times gruelling journey. Glad to hear you're doing well :-)

About Me

I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.