Question about trading strategy, scalping?

[MITCH027]

I initially tried to do this. I no longer employ this strategy.

One thing you need to consider is how you are going to get out. Some of these stocks don't move much volume (I learnt the hard way)

Scalping might work if you are moving large amounts of capital, but the risk may not make it worthwhile

I tried to do this earlier with ELD, buying at 16.5c with a large capital base. It kept moving between 17 and 18c so I thought 16.5c would easily bounce back to 17c at the very least. It kept going backwards, went down to 14.5c. Thats over 10% lost in one trade! If you're scalping you still need to employ a strategy around probable ranges etc

 

[MS+Tradesim]

Some time ago I did a thread on scalping ASX stocks.

https://www.aussiestockforums.com/forums/showthread.php?t=15175

 

[Nero64]

But can't I just buy it at 20c then leave a sell order open at 20.5c, then go back to doing whatever I was doing? If I'm pretty sure that it will jump up that 1/2 cent.

The problem is with a stock like SDL 20-30 people are trying to scalp as well.

So say you buy in at 20c and you want to sell at 20.5 there might be 600 000
on the offer side. You come in an you are 10th in the queue. The 600 000 have to be processed before your 10000 or whatever it is. You might get lucky you might not.

Depends what your time frame is because you might be locked in for a while or you might be locked out forever. I personally have been caught out scalping but I have a higher risk tolerance than some.

Good luck with your scalping.

 

[ptony1948]

Seems that spec stocks are no good. What about BHP? It has huge vol every day and is solid. Plus I get feeling that it must be traded as dividends are poor yield and capital gain isn't huge.(ok it doubled in last 12 months but that was a bounce back from a smashing)

 

[craigj]

you need to follow individual stocks for a while to see how they behave to scalp well
i prefer stocks in the 10c to 30c range with medium daily volume and a trading range of 2c per day
gbp mhm ccu to name a few that i have had success with this month