Fast Money Scalp Trading For A Proprietary Trading Company

Scalp trading is a high speed method of trading where you buy and sell a stock within a time frame of seconds to minutes transacting a lot of transactions during the day. Although you will be looking for profits of only 1 or 2 cents per transaction/trade, when you take into consideration the amount of trades you will be flipping, your gains can be very good. Furthermore, profits can still be had even when your trade breaks even. how come Because when you add liquidity to the market, the ECN will rebate back to you a portion of the trade. Incorporating this one strategy can provide a good income. Specifically, scalp traders work at exploiting the bid-ask spread. They buy a stock at the bidding price then immediately sell the same position at the asking price. Because this style of trading does best on equities that are priced low that don't move much, scalp traders generate revenue by transacting large volume. Scalp trading has no big one time profits, yet there are lesser not being profitable and so it is a safer method of trading the stock market. But wait, you must be properly set up to scalp trade.

You need the proper tools and rates to trade this style. It requires extremely discounted scalp trading commissions and privileged access to the NYSE floor. Both of which you would have a hard time finding at most discounted brokers. So how can you do this? Well, you need to find a reliable prop trading firm that will take you on as an experienced professional trader. And if you are not, there are some proprietary trading firms that will educate you.

Finding the right proprietary trading firm is about locating a company that will let you to trade their money as well as offer rates that are discounted. Many prop trading companies will allow you join them with only 5 or 10 thousand dollars. With that, they will let you trade with $100,000 or more depending on your experience. It's not unusual for a proprietary trading firm to take a $10,000 deposit and provide you with the ability to trade with $300,000 but you must know that they will want a percentage of your profits. Many will take 10 to 50% but that will depend on your experience. The better your track record, the less they will ask for.

The most important decision when finding a prop trading firm for your scalp trading method will be price and floor routes offered. Inquire as to what floor routes they have access to and if they can provide you with personal access to a floor specialist. Any good proprietary trading firms will do this if you are consistent in trading good volume. Next, see what their trade rates are. You will want to find a firm that will charge .50 to .70 per thousand shares. On a 2,000 share trade, that would be 1.00 to 1.70 dollars in and out; much better than your $8.95 per trade rate at a regular online broker. Be sure to also confirm that they pass the rebates back to you because as you will learn, the rebate is just as important to your scalp trading.

Courses are available that instruct the art of scalp trading. Get educated so you have a better chance for profits. Furthermore, 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. Successful trading.

Focusing on both the forex and stock markets, Affinity provides day trading online education with a niche focus on scalp trading. Visit their site to see why they are on of the top prop trading firms.