| Topic Name: |
First new york securities |
| Message Name: |
scalping equities |
| Date Posted: |
12/05/2003 |
| In Reply To: |
Sure, I understand greater risk = greater potential, and sure, I understand the concept of Value at Risk, but I don't see the correlation between position traders that will use risk management equations like VaR, and scalpers who trade the tape. In other words, how does the use of sophisticated risk management techniques by BBs, large funds, etc., even apply in making it difficult to make money scalping? Same for quant models. Don't those tend to be value-biased? If so, we're again talking about position trading. Unless I'm just uninformed, I don't see how that matters to the scalper who will hold positions for mere minutes or even seconds.
If calculating risk mathematically is putting the scalper who sets predetermined max acceptable losses on his trades at a disadvantage, I just don't see how. Granted, small spreads makes it tougher, and program trading can if you don't have any knowledge about it, but I don't think it's too difficult to get a handle on when/how most programs operate (in fact, I even know of a service you can subscribe to that has tracked equity program trading over many years; it kind of lets you pick out patterns as a heads-up). Point is, I don't follow you in how these techniques put the scalper at a disadvantage.
Gastrader, I'm not necessarily disagreeing with you, I just don't understand your rationale. In following this board for a month or two, I've come to view you as pretty much the guru on all things trading, your energy bias notwithstanding. So please, if you could, enlighten me as to why you think this way. As usual, your time is much appreciated. |
| Message: |
I don't know if you know this or not but bullets are gone. Life is tougher if you're an NYSE scalper. A lot of people made $ by skirting the uptick rule. That loophole is gone now.
Maybe it's easier if you're scalping index futures or bonds but it's harder getting an edge there since there are fewer inefficiencies. Just my .02.
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