Scalping. What is it and

…why the negative connotations?
Just a newbie question- I pretty much know what it is, but I want to get some ideas from everybody else. Thanks!:slight_smile:

Scalping in it’s purist form is opening a
trade for a very short space of time seconds,
maybe a couple of minutes at the most,
& having a winning trade, the spread plus a few pips.

If you are against the market then there is no problem
it can absorb the loss, but if you trade through a middleman,
the middleman has no time to “hedge” their loss.

Therefore it is classed as a no-no.

ie If you take 1 lot (100 000 units) of GBP/JPY @ $8.68/pip
& the spread is 7 pips, hold for 1 min goes up 10 pips then you
close the trade. You are 3 pips up, but the middleman has lost not
only those 3 pips but also the spread. :slight_smile:

right now i am testing a method on the daily charts. I’m using 5 different ranges on oanda demo sub accounts to see which is best. The smallest is a 5pip stop loss on a limit order with a 10 pip profit taking.The other account have increased stops and profit margins and I am entering both long and short limit orders all at 0:00GMT 12 am EST I plan on testing this on demo for 2 months and will post the results.

Some can call it scalping but I’m beginning to think it’s a pretty darn good method of money management. Fact is the “big boys” are still making money no matter how small a trade is. You can sit there and think oh they are loosing 10 pips or whatever , but your money in their account and is available as a “pooled” leverage for them to trade with.
Do you really think brokers just take our deposits and set it in a piggy bank on their lap until we ask for a withdrawal? We need to take advantage of ever way we can think of to make profits. As for other methods, I done the charts, lost money…trade news, lost money, I seriously think these charts are made made for stocks and have not been truly made adaptable for the forex market. Laters

Some time ago scalpers were seen as gamblers. It was the long term trades “fashion”.

Brokers do not like scalpers because the operations are too fast to be “treated”.

True ECN brokers do not mind how long you keep a trade opened.

fast in fast out" with small profitof pips in a matter of minutes