Talk:Scalping (trading)
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This article doesn't make any XXXXX sense. Some guy 01:22, 18 November 2006 (UTC) Agreed. It's utter nonsense.
I have added a discussion of scalping in the market manipulation sense. It's really entirely different from the arbitrage sense, but they both have to do with trading securities. I may try to clean up the rest of the article, if I get a chance. John M Baker 19:00, 8 January 2007 (UTC)
Whoever wrote this article has no understanding of trading in the financial markets (Anonymous Wall-Street trader)
This article does make sense, and is basically correct, if simplistic. I have personally made consistent profits from scalping the spread in the biggest sports betting market. However, the article suffers from confusing two different types of traders - those who aim to profit from the spread and those that aim to profit from small moves, especially in the paragraph entitled "time frame".82.21.244.201 11:02, 14 July 2007 (UTC)
[edit] What's the point of this article?
Isn't this all covered at other articles e.g. Pump and dump? Ewlyahoocom 07:08, 15 July 2007 (UTC)
- Well, not at the Pump and dump article anyway. Scalping, in the market manipulation sense, differs from pumping and dumping in that the scalper has a relationship of trust and confidence with those who receive the investment advice. I have not searched to see what articles might overlap with scalping in the arbitrage sense. John M Baker 23:28, 15 July 2007 (UTC)
[edit] By including any mention of Market Manipulation, the Reader is Mislead
I'm sorry, but I find this article is extremely misleading. I perform scalp trades all the time. I am a scalp trader. There is nothing wrong or illegal or fraudelent about it. It does not even approach market manipulation. However this article gives the impression that there is. Every day trader out there is a scalper. Many swing traders are scalpers. There is absolutely nothing wrong with the practice, nor is it an attempt to manipulate the market. IN ANY sense of the word.
First of all, if you mention scalping to any professional trader, they understand that it refers to taking small profits from small movements. What the article refers to in the section regarding "Manipulation" refers to "Pump and dumping" a stock, in which there is already an article. This section refered to the Investment Adviser act of 1940, but nothing in that act uses the word "scalping".
In essence, the practice that the first portion of the article refers to is already covered by "Pump and Dump". That's manipulation. It's not scalping. It's not even close to scalping. Scalping refers to the trade strategy a trader uses to enter and exit the market. Not his motivations for doing so. That's it. --Airelon (talk) 18:21, 29 February 2008 (UTC)Airelon
- I think the article is clear that it is talking about two different things, both of which are referred to as "scalping." I suppose it could be split into two separate articles, but that seems unnecessary, especially when it isn't a terribly long article anyway. As to your other points: The Supreme Court ruled in 1963 that the Investment Advisers Act of 1940 prohibits scalping (in the market manipulation sense), even though the Advisers Act does not use the word or spell out the practice, and the article distinguishes between scalping and pumping and dumping. John M Baker (talk) 22:14, 29 February 2008 (UTC)
[edit] Delete
This usage weird. The article totally confusing.
Scalping, when used in reference to trading in securities, commodities and foreign exchange, may refer to (i) a fraudulent form of market manipulation or (ii) a legitimate method of arbitrage of small price gaps created by the bid-ask spread.
Scalping in this sense is the practice of purchasing a security for one's own account shortly before recommending that security for long-term investment and then immediately selling the security at a profit upon the rise in the market price following the recommendation. The Supreme Court of the United States has ruled that scalping by an investment adviser operates as a fraud or deceit upon any client or prospective client and is a violation of the Investment Advisers Act of 1940.[1] The prohibition on scalping has been applied against persons who are not registered investment advisers, and it has been ruled that scalping is also a violation of Rule 10b-5 under the Securities Exchange Act of 1934 if the scalper has a relationship of trust and confidence with the persons to whom the recommendation is made.[2] The Securities and Exchange Commission has stated that it is committed to stamping out scalping schemes.[3] Scalping differs from pumping and dumping in that a pump and dump does not involve a relationship of trust and confidence between the fraudster and his victims. —Preceding unsigned comment added by 24.234.76.24 (talk) 23:27, 3 June 2008 (UTC)
