Is There Still Money in Scalping the Markets?

The trading landscape is constantly changing and probably one of the most affected groups is day traders who actively participate in the markets each day. In a relatively short period of time we have seen spreads shrink, volatility increase, fully electronic markets, fee structure changes and the demise of the specialists and market makers traditional roles on the stock exchanges. It is likely day traders who have been involved in the markets for some time adapted their strategies to current conditions or where forced out of the market. New traders coming into the market face a choice of becoming a scalper or choosing another method of trading. This article will look at some of the benefits and down falls of scalping.

What is Scalping?

Scalping is the process of capturing small price moves in the markets, normally repeatable each day. A scalper may make several to several thousand trades each day. Scalping techniques are executed by individual traders, entire trading firms and also by algorithmic black box systems. With the amount of movement that occurs in the markets each day there are ample opportunities to grab small profits, but stops and losses must be kept extremely tight. Since profits are small stops must also be kept small so that a loss does not erase the profitable trades.

Oh the Joys of Scalping

There are benefits to scalping, but scalping often requires a certain personality type. While anyone can learn to scalp, the people who will enjoy scalping are the ones who generally don’t mind stress, can focus on the task at hand and often spend hours of intense concentration during their selected trading time. The traits among scalpers will of course vary, but since many trades are often made every single day, the trader needs to be disciplined and emotionally strong. Making many trades in a day can be wearing and many traders burn out before finding their groove.

The burn out issue can be avoided by knowing what scalping will entail both technically and psychologically. Once we know what to expect we can prepare and develop our strategies for profiting, remaining disciplined and focused. Let’s first look at the advantage of scalping:

– No overnight positions, which means much uncertainty is removed.

– Positions are not (and should not) be taken prior to major news announcement or economic events. This means scalpers do not gamble on direction.

– Losses are kept small and gains run until there is a trigger for exit. ยท Many trades can capitalize on small gains over and over which take advantage of “inefficiencies” on short timeframes (and these do exist).

– The trader can find almost endless trades (not all are worth trading though) as the markets are constantly moving.

– No real need for researching (although it doesn’t hurt) as the trades can be made on very short-term pops or drops.

– Scalping strategies can be created for almost any market – fast moving, slow moving, trending or range bound.

So there are some definite advantages to scalping…and there are probably many others, but now we need to look at the downside.

Oh the Horror

Scalping is definitely not for everyone. Some will take to it immediately (enjoying it, but profits will still take time to materialize) while others will feel there is no way they could ever trade like this. Let’s look at some of the potential downsides to scalping (remember both the advantage and disadvantages are subjective, and not all people will view the following as negatives).

– Scalping often involves waiting and watching a stock or other instrument, waiting for the right opportunity – patience.

– Fees can be high if the trader often removes liquidity (in the stock market fees can be reduced by adding liquidity, ie. Bidding on the bid side instead of buying at the offer).

– While traders capitalize on quick moves, unexpected quick moves in the opposite direction can be painful.

– Intra-day swings can be volatile and may seem chaotic…although this is also possible on longer time frames.

– To scalp effectively the trader needs access to high end trade execution software (trading platform), very low fees, and have a high speed internet connection and computer to keep up with quotes.

– Scalpers often take larger positions than they might for a longer term trade because the stops and profits are smaller, therefore to maximize capital use larger trades are taken. This can mean that if the trader loses their internet connection or their computer crashes they could be in for a very high stress time.

– Since trades are entered and exited generally very quickly, it is often impossible to set stop orders. Mental or soft stops are used.

The Verdict… In Today’s Market

The day trading boom of the late 90′s has come and gone and only the best day traders have survived through to the writing of this article. Those traders, and the new ones coming in, must be nimble and adaptable. But the real question is: Should someone scalp in today’s volatile markets?

Increased volatility has hurt many traders, but it also has created advantages. It has really become an issue of “the more the market changes, the more it stays the same.” Things still go too high, and then fall too far and there is always room for the scalper to jump in and take advantage of these opportunities intra-day. There are also the stocks which barely move at all, and a scalper can step in adding liquidity and trading the small range.

While some may argue that algorithms, black boxes and automated trades eliminate the arbitrage opportunities in the stock market, this really could not be further from the truth. If anything the abundance of computer orders allows for short term traders to capitalize on computer orders coming into the market. Just as humans push things too far, often algorithms do too, and then everyone turns and switches direction. Nothing has changed; it is just how we view the market that has changed. But the market does not care how it is viewed. As long as the market is there, scalpers can capitalize on its movements if they have the right personality for it.

Using The Internet And Ebooks To Market Your Offline Business

Marketing your business doesn’t have to be a hassle. You just have to know what to do to start bringing in new leads into your business. And once you acquire these leads, you will want to know how to follow up on these so that they can buy your product. And even after they buy your product, you want to make sure that they’re satisfied with their purchase.

This is something a lot of business owners neglect. They run an ad, get leads, make sales, and then that’s the end of the relationship. You don’t want this to happen to you. After you’ve made the initial sale, follow up on these customers so that you can earn more sales. In fact, 80% of your profits will come from these people, so it’s important that you start marketing to your existing customers right away.

Now even with all that said, to have a customer to sell to, you have to first generate them. You can’t just start a business and expect customers to flock into your place of business. You have to be able to attract people using little-known secrets of marketing. These “secrets” of marketing is know as direct response marketing.

With direct response, either you’re ad works right away, or it doesn’t work at all. It’s a great way to see if your ad is working now, or if it flops. Hopefully it doesn’t flop, because you want run this campaign over and over again.

Now with that being said, thee a few techniques that I would like to share with you that will help to push your business over the top. Here’s the first thing that you can do:

1) Online marketing and ebooks

Marketing your business online can be done in a snap. All you need is some unique content, pay per click advertising, and some article marketing. With these elements, you’ll be ready to go when it comes to marketing your business on the internet.

To succeed with online marketing (since your so busy), start off by selling ebooks first so that you can get your feet wet into the game and see how this whole internet marketing thing works.

Another reason why you will want sell ebooks is simply because of the instant delivery factor. When someone buys your product, they will be able to instantly download it without you touching or shipping anything what so ever. This is a prime reason why people prefer online marketing vs offline marketing.

Nevertheless, you can still use ebooks to your advance. It probably won’t be about a few days to write one, and it should be related to the field that you’re in right now.

This is will help to increase your sales and profits even while working in your business. You essential can get paid automatically without doing virtually anything.

Hopefully you’ll use these tips to have the most success as possible in your business. They definitely work, and it’s time that you start having the most success as possible with your business

Good luck with using these tips to make more sales and products today.

The Fastest Route to Profits For the Affiliate Marketer

CPA marketing is a hot topic today among the veterans of online affiliate marketing strategies. Even those new to e-commerce are finding that CPA marketing is extremely easy to implement and extremely profitable on high traffic sites. You don’t have to be a master of online technologies to be successful in CPA marketing.

If this sounds like a too good to be true money making scheme, it’s not. After all, you have to work hard to build and maintain a site that attracts consistent traffic. But if you can do that, that’s about all it takes to make a lot of money using CPA marketing.

So Much Money Available
The reason there is so much money available for CPA marketing affiliates comes down to the simple reality that it is cheaper to engage and interact with target market consumers online that it is to engage in traditional advertising and promotional techniques.

Back in the days when traditional advertising was the norm, it would cost a company a lot of money to advertise in the direction of people who may or may not be interested in their products, and may or may not even notice their advertisements.

Even worse, most studies show that a large portion of those who viewed traditional print, radio, or television advertising misunderstood the messages being conveyed across these traditional mediums. The banner advertising that dominated the advertising marketplaces of the first ten years of the Web had similar problems.

New Cheap Advertising Methods
New methods of paying for advertising in direct response to the success of the advertising campaign have eliminated many of these problems, thus reducing the cost to advertisers for reaching each member of a target audience.

For example, whether you have a $100-a-month advertising budget or a $100-million-a-month advertising budget, with CPA marketing or even CPC (cost per click) marketing, you will pay approximately the same amount for each member of your target audience that you successfully reach.

So for the poor advertiser it is no longer necessary for you to save up enough money to reach some minimum advertising buy level for advertisements that recklessly soar out to dispassionate and uninvolved readers, listeners, or watchers. For the wealthy advertiser, huge sums of money don’t just disappear with unexplainable or untraceable direct returns.

CPA Marketing Is Easy
It is easier for CPA marketers and CPA marketing affiliates to get together and begin a campaign. Those doing the advertising can often have their promotional products designed and hosted for free by the marketing broker involved.

Those who sell the promotional results, the CPA marketing affiliates, no longer have to worry about whether or not they’re closing sales, as they are mainly offering free items that are easily promoted. The whole promotional kits can be quickly downloaded or implemented into your website straight from the CPA broker site. The whole process is often as easy as copy and paste.

This doesn’t mean that the CPA marketers and CPA marketing affiliates can’t do things to help improve their results, simply that it doesn’t take a whole marketing team, design team, and engineering team to launch a simple, successful promotional campaign. The key to tweaking your results is to read all of the information on which you can focus your eyes.

Just like any other kind of offer promotion, there are techniques and tricks of the trade that substantially increase your odds of success and while you can simply jump in and hope for the best, you are much better off learning from a professional who has tested and tweaked techniques for maximum profits.