I want to SCALP!!

[acereto]

Hi there... total noob here i dont know if this is the correct place to be asking this question, but here it goes.. the way i like to trade is by scalping, and since im just starting out learning i would like to know what tools, indicators, charts, etc. are best for scalping, if there is probably a winning combo of charts and indicators for scalping, the time frame of the charts.. etc.. any help would be great!! thanks!!

[phil838]

Originally Posted by acereto

Hi there... total noob here i dont know if this is the correct place to be asking this question, but here it goes.. the way i like to trade is by scalping, and since im just starting out learning i would like to know what tools, indicators, charts, etc. are best for scalping, if there is probably a winning combo of charts and indicators for scalping, the time frame of the charts.. etc.. any help would be great!! thanks!!

I know this isn't what you want to hear, but the words "total noob" and "want to scalp" are two of the most dangerous phrases a trader can utter.

Scalping is hard... Really hard! And it's almost unheard of for a new trader to be a successful scalper. I'd urge you to consider trading longer timeframes first, and once you're successful on them then you can learn to scalp.

[Davidee]

Scalping is very, very hard.

Two reasons why. Firstly, the % commission you pay on these trades is huge. Lets say you're targeting 10 pips a trade and the spread is 2 pips. The average 10 pip win will get you 8 pips (10 pips minus the spread), the average 10 pip loss with be 12 pips (10 pips plus the spread). Therefore in this example losses are 1 and a half times as big as the winnings simply because of the spread. Odds like that are exceedingly difficult to overcome. Secondly, the shorter the trading time frame is, the more random the prices. Prices aren't totally random (if they were nobody could make money in the markets) but randomness has some influence in the markets. The shorter the time frame the greater the randomness.

If you are going to scalp though, and I don't recommend it, try a system that scalps a strongly rising ADX on a 1, 2 or 5 minute chart as taking advantage of a strong trend is the easiest why to go it. I'd suggest staying well clear of pivot points.