I am just looking for a suggestion on an ecn broker that allows scalping if any of you guys know of any I’d greatly appreciate any input, also another question I’ve been wondering is why is scalping so frowned upon. I understand for bucket shops that they can’t pay out on expired quotes, but it even semms to me that a lot of other traders out there kind of frown upon it as well. Just wondering why?
http://forums.babypips.com/newbie-island/6165-scalping-what.html
As you can see jibby03 this has been discussed before on
other threads, a quick search of the forum gave me these
posts.
but it even semms to me that a lot of other traders out there kind of frown upon it as well. Just wondering why?
This is because it is a required taste, a lot of seasoned pros frown
upon it because it isn’t “pure” trading, plus if traders admit they scalp
are the brokers reading this?
I also read somewhere that the ECN based companies allow scalping
because there “commission” is charged on each transaction, not
in the spread.
Also if you read through Tymen1’s posts you will see that he admits
he is a scalper & has a system for it.
thanks for the reply daydreamer, your right i should know better …should have done a search first. I’ve been on here for about 2 months now and read most of the posts in this newbie section and didn’t recall ever coming by anything. i will check out the link provided. I too am a scalper with a very successful system so far, going to break ground with living trading sometime in 2008 when all my testing is done, just looking for some other input.
thans again daydreamer
another question i have that was not answered in the other post is what defines scalping. Is it the short time period of actually having an open trade. Or is it the small target. My system i am using isn’t really an in and out trade. Most times it can take anywhere from 20min to 2hrs to either hit my profit or loss. Say the profit is set at 10 pips. Is this still scalping?
Is it the short time period of actually having an open trade
Yes this is the answer, a true scalper would use a
large trade size, 1 lot+, for a very short period of time
ie below 1 or 2 minutes.
The object is just to collect as many pips as possible
in that time frame.
On a market maker system this does not give the broker
the time needed to offset the loss, that is when the
restrictions in use start to come in.
On an ECN though where the commission is made through
a transaction fee there should be no problem, the broker
gets their money however long the trade is open for.
Most times it can take anywhere from 20min to 2hrs to either hit my profit or loss. Say the profit is set at 10 pips. Is this still scalping?
In my book no, you are giving the market maker long enough to
offset your trade.
thank you very much for your opinion daydreamer. appreciate it.
Scalping is a whole new world when you’re live.