Scalper's Forum

[traderwiz]

Hmmm , what If you don't get any news at all, you are stuck ? . Also I believe if you are able to understand the basis you should be able to trade any stock for that matter . Its like driving a car , if you can ride in roads of mumbai, you should be able to ride some other car at some other place like Delhi or US of a ,as long as you know driving . Right ? no ? . I am/want to learning proper driving ,so that I can drive any where .

Dude honestly if some one can drive in India, they should be able to drive "in any part" of the world!!!!! Its much harder to drive a car here!!!!!!!!

 

[traderwiz]

Trader111
Good observation on your part. My experience is that even for short time frame say minute bars, there should be some indicator that could give a trader some kind of a clue. Thing is that trader has to tweak these indicators and play with it a little bit. Most of these software packages are pre-configured for a swing trader or a position trader. And the standard settings for say a fast stochastics may not be appropriate for a scalper. This is where experience and skills come into play. I would like to have 3 non-correlated indicators for scalping. Can some one tell me what 3 would be uncorrelated indicators? This in addition to observing the market depth.

 

[uasish]

Trader111
Good observation on your part. My experience is that even for short time frame say minute bars, there should be some indicator that could give a trader some kind of a clue. Thing is that trader has to tweak these indicators and play with it a little bit. Most of these software packages are pre-configured for a swing trader or a position trader. And the standard settings for say a fast stochastics may not be appropriate for a scalper. This is where experience and skills come into play. I would like to have 3 non-correlated indicators for scalping. Can some one tell me what 3 would be uncorrelated indicators? This in addition to observing the market depth.

We trade the Price not the Indicator.Indicator is just a tool to guide me if i am confused & cant determine the Mkt's movement,thats all.
Colinearity of several indicator is not the point here,we are absolutely not interested in an indicator if we can undersatnd the Mkt's movement,if we cant then steps in indicator to GUIDE me.It is not like this that as 13 DMA crossed 39 DMA hence i trade rather it is like as HL is now found hence trading for a HH.

 

[Cactus]

hw many day traders and most imp hw many scalpers?

What is the diffrence between scalper & Day Trader ?

For stocks even on EOD time frame it requires a lot of combining with other methods

What combination.........or method.....? Day trading require only one method........Locking the Profit.

Good trading is'nt about finding a 'good' system. It is about understanding market behavior.

No sustem is good unless u fully understand that. System........that u develop for urself with what ........u r comfortable............
Understanding of market behaviour comes with time........

 

[traderwiz]

traderwiz, it's not just a observation... and u missed my point again...

why do u want to jump to indicators before being done with concepts? plz read JDM's and Tape's post carefully...

I love to meet professional traders... have met a lot of proprietory traders.... why can't u be assured that in such short-term it is better for beginners to stay away from 'advanced' studies and trade directly on price?

The question here is the "how" part? Can you please explain how do you trade on just the price alone on NSE? I do agree with you that for scalping there may not be much time to use any indicators at all (the indicators and technical analysis tells what happened in the past). A Specialist on NYSE has control over the "price". He can print pretty much any price on the tape. A market maker on NASDAQ also has lots of power. If a trader in Goldman or Lehman wants to support a certain price then he can do it. Conversely in an ECN, it is possible to figure out which market maker is dumping a particular stock on a certain day. In the day trading world, this technique is referred to as "the axe". But what I am trying to figure out is how do you figure this out on NSE? There are no market makers and there are no specialists. And I cannot simply route my order to Lehman or Goldman and see whether if they would trade at a certain price etc. I really think it is a lot harder to trade on NSE.

You had mentioned scalping on "price" alone. But who controls this on NSE? Like I had mentioned before, if you can guess the specialist mindset, then the game becomes quite predictable on the NYSE. Also on the NASDAQ, if you can guess if a particular market maker is a net buyer or a net seller, then scalping become a monotonous no brainer. There are ways to do this by routing a certain type of order to the market maker....

How is this done on the NSE or even BSE?

 

[traderwiz]

We trade the Price not the Indicator.Indicator is just a tool to guide me if i am confused & cant determine the Mkt's movement,thats all.
Colinearity of several indicator is not the point here,we are absolutely not interested in an indicator if we can undersatnd the Mkt's movement,if we cant then steps in indicator to GUIDE me.It is not like this that as 13 DMA crossed 39 DMA hence i trade rather it is like as HL is now found hence trading for a HH.

So lets forget about all those indicators for the moment....

So I guess these are the tools of a scalper on an ODIN Diet platform
1) Bid size (best 5)
2) Ask size (best 5)
3) LTQ Last Traded Quantity
4) LTP Last Traded Price
5) I guess some tick charts

So how should a scalper make trading decisions? Is it some intuitive feeling? is it some gut feeling? Is it a rational decision? or are there any specific methods (if any)? is it possible "to read the tape"? If so, can any one demonstrate a good example and post screen shots?

 

[traderwiz]

Exactly.. very right. Even on NYSE since it became hybrid rules of game have changed pretty much... particularly this year. We had real changes in microstructure... yes microstructure changes for a exchange but only in years. I am sharing here one method I know for NSE. Will take me more than a couple of weeks since it requires daily intraday eg.

Great. Looking forward to learning and exchanging interesting ideas from you....

 

[traderwiz]

The way how "I would" scalp in theory on NSE is as follows:

1) I would begin following the market depth for 1 or 2 stocks every day to get an idea.
2) I would try to see what happens when the "total bid size" is say significantly larger than the "total ask size" and vice versa.
3) The challenge next is to figure out if there are more buyers than sellers or vice versa. (I think this is half the game right here......)
4) Try to get a feeling for key support and resistant levels ( i guess this is the "price" part that was discussed before in the thread.)
5) Have "an eye" on the tick charts.
6) pull the trigger and pray God that I am right.

 

[traderwiz]

Also, it is very important to scalp in a very volatile stock. I mean, if the stock doesn't move any where, then there are no opportunities..right? As long as a stock moves, money just gets transferred from losers to winners in this game...

 

[traderwiz]

Thanks for those charts Trader111. Am I correct in assuming that all those 4 charts are all 1 minute charts? or is it a tick chart? If it is a tick chart, how many ticks do u use?