subject: Scalp Trading Nyse Stocks For Quick Profits [print this page] Scalp trading is a extremely quick style of trading where you execute trades in a frame of time from seconds to minutes transacting a lot of trades within a day. Even though your goal will be for profits of only 1 or 2 pennies per transaction/trade, when you take into consideration the amount of shares you will be flipping, your gains can be very good. Furthermore, you can still make a profit even when your trade breaks even. Why? Because when you add liquidity to the market, the ECN will provide you with a rebate. Exercising just this simple strategy can provide a nice daily return. To be specific, scalp traders trade in between the bid-ask spread. They buy a stock on the bid then right way unload at the ask. Since this style of trading performs better with stocks that are under $10 that are slow moving, scalp traders profit by trading big volume. Scalp trading has no homerun profits, but at the same time there are lesser not being profitable thus it tends to be a lesser risk style of trading. However, not just anybody can scalp trade. Low commission rates and the proper tools are an absolute necessity. It requires extremely discounted scalp trading rates and privelaged access to the NYSE floor. Both of which you would have a hard time finding at your online discount broker. So how can you do this? There are proprietary trading firms that take you on as an experienced trader. And if you are not, you will need to find a proprietary trading firm that will educate you.
Finding the right proprietary trading firm is about locating a company that will let you to trade their capital as well as offer rates that are discounted. Many prop trading companies will allow you join their firm with deposits as low as $5,000. With that,For that, they will let you trade with $100,000 or more if you are a proven successful trader. Its not rare for a proprietary trading firm to accept a $10,000 deposit and provide you with the ability to trade with $300,000 but you need to realize that they will want a percentage of your profits. The profit sharing scale can range from you getting 50 to 95% but that will depend on your profitability. The better your track record, the less they will ask for.
The most important decision when looking for a prop trading firm for your scalp trading method will be commissions and floor routes offered. Inquire as to what floor routes they have and if they can provide you with your own personal floor broker. Any good proprietary trading firms will do this if you are an active enough. Next, see what their commission rates are. You will want to find a firm that will charge from .0005 to .0007 per share . On a 3,000 share trade, that would be 1.50 to 2.10 dollars per roundtrip trade; an improvement over the $8.95 per trade rate at E*Trade. Also make sure that they pass the rebates back to you because as you will learn, the rebate portion of the trade will be your bread and butter to profitable scalp trading.
Many courses are available that teach the the finer elements of scalp trading. Get educated so you have a better chance for profits. In addition, if you are looking for a place to trade, the proprietary trading firm below offers the above rates, good floor routes and extensive trader education. Happy trading.
