Any good stocks for scalping (daytrading)?

Question

I've been investing and swing trading for years. For the past few months I've started daytrading with a prop firm. It's a tough game, but I'm starting to figure it out. Started out position trading on fairly slow stocks like GE, but I actually do better on faster stocks. I'm pretty much a pure scalper. I was trading XOM but it was a bit too volatile. Then I found BAC and I was in heaven! I hardly even used charts, I just scalped it over and over looking at the Level 2 quotes. Unfortunately, the new SEC rules limiting short selling apply to this stock, and I don't want to stay with a stock I can't short. So my question is, does anyone know some stocks similar to BAC for scalping, moves fairly fast with nice big candles, but not all over the place like XOM? Also, it must be an S&P500 stock and do over 8 million shares of volume daily. Serious answers please, don't bother telling me I'm a fool for daytrading because I'm already committed to doing this.

Answer 1

You ever thought about trading currency? Same fundamentals, just no nosy SEC to deal with, go short go long. go both. Theres tons of sites online. lemme know if your interested. I'll tell ya who I use

Answer 2

Sorry, I can't help you. I'm like you in that I usually swing trade, but with the market the way it is, it's too risky to hold stocks for very long. So I too have switched to daytrading, and I must say that it has been working pretty good. I always hear people here on YA! talking about how risky daytrading is, but lately it's the investors that have been taking a beating. I think that it's people who don't adapt to changing markets that are the real fools. I don't have to worry about what the market is gonna do tomorrow. I usually stick to small trades unless something looks too good to pass up, then I go all in. Usually only two or three times a week. But that's plenty. Anyway, I just thought that I'd let you know that not all of us think that daytraders are fools.

Answer 3

Just a comment to support Shake's comments.  The inability to adapt is most costly.  He nailed it.  

The 2x Ultra trades in oil and financials are doing well and provide inverse trade options

There are many keys to day or swing trading, and if you put in the homework, you can be successful.  It is particularly important to note the realization that one does not need to trade every day. Being patient and waiting for a big rally day with ALL of your powder dry and available, is a much more appropriate strategy than chipping away a nickel at a time, thinking you have to trade 24/7.

Answer 4

Do you really think that any trader who knew of stocks which fell into the parameters you outlined would divulge  those to you? A complete unknown stranger ? if so, someone needs a " head examination ".

Answer 5

Here are two I have been trading.

Valero (VLO) and MGM.  Valero has been down because it is mostly an oil refiner but solidly profitable.  MGM has been down because travel to Las Vegas has been down due to higher airfares due to higher oil prices.

Answer 6

Will they let you trade an ETF?

If so, why not check out something like SSO. It is pegged to the S&P500 and current share price is in the area of $60. It has the volume you are looking for, a good daily range, and, since it is an ETF, there is no up-tick rule.

The one minute average volume (over 50 periods) runs around 50-100k, so you should be able to move a few hundred shares in and out without any problem.

If you ever get to the point where you are trading many thousands of shares and need more one minute volume, you can always move up to the more expensive SPY and your setups will be the same as they were with SSO.

I know, you asked for a stock. It was just a thought. ;-)

Good luck.