jthehut
124 posts
msg #28232
- Ignore jthehut |
9/1/2003 10:46:29 PM
Before you head for aloha land, RumpledOne, can you lead me in the direction of how one would learn how to "scalp" stocks with the "big boys", as you put it? I've always been curious of how one could do such a thing.
ps your picks against Joe G are dead on, although trade a little thin for my taste. Do you notice how your rsi(2) lows line up with the rsi(14) and williams %R lows? Should be nice movers if volume/interest picks up!
M
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TheRumpledOne
6,411 posts
msg #28239
- Ignore TheRumpledOne |
9/2/2003 2:40:33 AM
How to scalp with the Big Boys...
First thing you have to be ready to trade at 8:00 A.M. E.S.T. That's when premarket opens. And you need a broker that allows trades during the extended hours.
And you have to have enough buying power to buy 2,000 or more shares of $20 stocks and higher... These stocks bounce $1 or more sometimes... Look at SYMC, QLGC, KLAC, HD, INTU, UOPX... intraday. Wouldn't you like to trade 2,000 or more shares of those?
You can do the same with $5 stocks like SONS, EXTR, DYN which are no longer $5 stocks... Even Q can provide some nice scalps on the days it runs.
See, 10% of $10,000 is $1,000. 5% of $50,000 is $2,500. Would you be happy with those daily returns?
You have to have real time charting... I use eSignal and QuoteTracker. Really need to have Linear Regression setup so you can see the true bottom.
When you get a Low of the Day Alert for a stock, you put it in the chart(s) and see if it is ready to bounce. Use the daily loss leader board in real time of course. Also, stocks beaten down one day sometimes bounce the next morning.
It helps to have a live news feed.
You have to be quick.. and I mean quick or the big boys will beat you up and take your lunch money. No time to think.. PURE REACTION. A good scalp trade lasts minutes not hours (usually). 2 minutes, 2,000 shares, 5 cents is $100.00.
How does that sound? Do that 10 times a day or more and you have some folding money in your pocket.
Money management is key - if you guess wrong, sell quick and be ready to reenter and make it back and more.
All I look at for scalps is RSI(10) and the Candles on my chart. Simple, quick, effective. You ever see a drag race? RSI(10) < 20 is the PreStage Light. Then when the red candles turn green and hold for 1 minute and the next candle is green toO... that is the GO LIGHT. That's it! When do I sell? When it stalls it falls... the second the stock stops going up... I bail!! I take whatever the market gives me. I don't care what the stock does after that. That would be second guessing myself. No time for that. Have to find the next trade.
That's about it. Ponder this BEFORE you post a bunch of questions.
MAY THE TRADE BE WITH YOU.
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jthehut
124 posts
msg #28251
- Ignore jthehut |
9/2/2003 8:01:04 AM
The only question I have right now is...
when the hell do you sleep: you wrote that message at 2:30 AM?!?!? (unless you're in Hawaii right now...) ;)
will read and re-read, questions to come later
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TheRumpledOne
6,411 posts
msg #28252
- Ignore TheRumpledOne |
9/2/2003 9:30:44 AM
I am on West Coast Time in Tucson, AZ... So I went to bed a little past midnight
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jthehut
124 posts
msg #28285
- Ignore jthehut |
9/2/2003 9:10:17 PM
But you still would have to wake up in about 5 hours to trade the EST pre-market, wouldn't you (LOL!). I get up every day at 6AM to get ready for the work day, I usually take a nap in the evening to be able to stay up after 9 pm, then I go to bed between 12-1 am. Can you guess that I'm not married/no kids?
Anyways, I can't get the ultra-"cheap" commission trading you probably do, unless I marry my US girlfriend (I'm from Canada). Harder to get those $6.95 per trade dealies (I pay $30 for internet trades). C'est la vie, but at least I can stay on top of those delightful small-caps we love so much on the Toronto exchange.
2% a day, eh? I will email you later, RumpledOne (yes I know the addy you mentioned before).
thx,
M aka jabba-the-hut
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jthehut
124 posts
msg #28286
- Ignore jthehut |
9/2/2003 9:10:48 PM
But you still would have to wake up in about 5 hours to trade the EST pre-market, wouldn't you (LOL!). I get up every day at 6AM to get ready for the work day, I usually take a nap in the evening to be able to stay up after 9 pm, then I go to bed between 12-1 am. Can you guess that I'm not married/no kids?
Anyways, I can't get the ultra-"cheap" commission trading you probably do, unless I marry my US girlfriend (I'm from Canada). Harder to get those $6.95 per trade dealies (I pay $30 for internet trades). C'est la vie, but at least I can stay on top of those delightful small-caps we love so much on the Toronto exchange.
2% a day, eh? I will email you later, RumpledOne (yes I know the addy you mentioned before).
thx,
M aka jabba-the-hut
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bob79924
38 posts
msg #28319
- Ignore bob79924 |
9/4/2003 3:53:20 PM
To jthehut:
Ameritrade is available in Canada. In the U.S. it's 10.99 per trade. Is it so much higher up there? Do you have a friend in U.S. whose address you could use? Once you are on the internet it doesn't matter where you are on from.
Bob W.
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jthehut
124 posts
msg #28331
- Ignore jthehut |
9/5/2003 12:23:22 AM
Just the tax-situation would concern me, don't know how this works with using addresses that aren't yours when you're not a "lawful alien" etc.
Any accountants out there that know about this?
M
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bob79924
38 posts
msg #28341
- Ignore bob79924 |
9/5/2003 12:27:59 PM
jthehut:
My sister in law, a Mexican living in Mexico, banks in one of my credit unions here in the U.S. She fills out a form that makes her exempt from income tax withholding and has no liability for U.S. income tax. Probably it would be the same for a Canadian citizen, including stock market income as well. Of course, Mexico has no income taxes, but if you have them in Canada they would probably make you pay taxes on your U.S. income. It might be worthwhile to get some professional advice on the matter.
Bob W.
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jthehut
124 posts
msg #28343
- Ignore jthehut |
9/5/2003 2:52:12 PM
Thanks for your input, Bob.
M
ps just came back from my "real" job, the one I wish I could get away from...
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