If you have been reading Timothy Sykes’ blog for a while, then you know that he encourages his followers not to scalp. What is scalping? It is very fast intraday trading, trying to profit from small moves, usually in momentum stocks. The average profit on a trade of a scalper, even a good one, may be under 1%. While those profits can add up, scalping has many downsides which I describe below.
Since I started following Timothy Sykes and became a fulltime day trader I have tried to diversify my trading strategies to include certain kinds of scalping. I have done well. In my trade journal (a huge Excel file where I track every single trade I make; you are keeping a trade journal as well, right?) it shows that I have made $3700 (weighted average profit of 2.1% per trade) trading in a style similar to Muddy of Green on the Screen fame. I have also made about $18,500 (weighted average profit of 1.8%) by trading the aptly named “random trading” style, which includes a significant amount of scalping.
While I have made money by scalping, it has caused me much stress and the constant trading has also helped to damage my right wrist, making it difficult and painful for me to do much of anything right now. My wrist will eventually heal if I give it enough rest. In order to rest it with out ceasing to trade, I am looking to get four touchscreen monitors so that I will not have to use the mouse as much (I’m already using voice control for many functions on the computer but cannot use that to trade).
I’m looking at monitors from Planar Systems (a penny stock– PLNR) and Elo Touch Systems. If you have any recommendations for a brand of touchscreen monitor or for a type of touch screen monitor (resistive, capacitive, SAW, etc.), I would be much obliged. Please leave your comments below.
Also, I should point out that Timmay’s Las Vegas seminar is coming up on November 19, in today as the last day to sign up. I’m going!
(please note that this post was written using voice recognition software. I apologize for any errors.)