I think using low lots we can find the Trend and go with trend in this way we have to wait for few days for big move what you will say? As i think long trader are more successful as short term traders. But if you are trying to do long trade then you should use some signals from reliable sources, that will help you to determine and set target, if you set that target then it will be fruitful for you. Short terms have other benefits, in short term you see the possibilities of short pips and get profits without waiting the market rise or fall more.
However, long term trading can be profitable but it is also carry so much risk in trading too so you can do it but your performance could decide it that you make profit or loss.
Well- and anyone can feel free to correct me if I’m wrong- but I don’t know of any really successful scalpers. I know there are plenty of day traders. But most of the successful traders I’ve seen are usually in the market for days/weeks at a time. When you’re a long-term trader you have to be very discretionary on what entries you choose. And signals on higher time frame charts tend to be more accurate because there’s a lot more information presented in a daily candle as opposed to an hourly.
I think anything can be profitable provided the trader really works at it. I chose long-term trading because it meshed better with my life and other life goals in general. I just did not want to spend hours a day in front of the charts really.
I know of a forex trader who is in the market about 15 minutes (sometimes longer), his last year performances was a bit more than 100%.
But I didn’t hear of any ultra-short timeframe scalper who is profitable.
Michael Boutros Scalper
Kirk Norwood Day Trader
Jonathan Fox Swing Trader
You can google all 3 and see they’re successful in their trading style all use different indicators as well
+1 I don’t think you could ever get someone who is a position or swing trader to agree with someone who is a day trader and especially if someone is a scalper. Same as which if any indicators to use. It depends on what type of trader you are and what you’re trying to achieve. But as stonecoldmichael says anything can be profitable but you do have to work on it continuously.
I agree with that.
However, most beginners want to make money ‘right now’, so they go to low TFs (I did this too, went to M1). Overtrading and trading without a plan comes automatically. So I would recommend every beginner looking at higher TFs too and not staying at M1.
There are traders, who say, if you can’t trade on D1 profitable, you can’t do it on M5 or any other lower TF. However, trading on D1 requires patience.
Don’t forget patience’s brother. . .discipline :). Time frames new or inexperienced traders trade on is not really the problem it’s more to do with what they do on the time frames. As you said, you need a plan based on what kind of trader you are and what you are trying to accomplish. Again doesn’t matter what time frame you’re trading on, you need to have patience and discipline. Some might say you need more patience and discipline to trade successfully on lower time frames.
You can trade any time frame and be profitable, you just can’t use the same method and strategy trading the D1 as you would the 5 minute.
For me it seems like there is no differense. Some people trade long term some make fast trades, it is all about your style and system you use. If you have profitable system, who cares about terms?
Ok, I am a short term price action trader, I profitably trade EURUSD 5 minute chart, I trade the European session for 2.5 hours and only take a maximum of 5 trades, 5 pip + commission stop loss, 1:1+ risk to reward. I’m not sure what everyone’s definition of scalping is but anything is possible with the right conditions and trading plan/style.
The reason many of us get into forex is because of the leverage. I have tried trading the daily and 4 hour time-frame during my trading journey and I can reliably say that the use of leverage is greatly diminished trading the higher time-frames, and the potential results are also greatly diminished compared to trading on lower timeframes.
For some reason many people bash “scalping” calling it risky compared to higher time-frame, but in my opinion it is less risky for me to trade the 5 min chart with a very tight stop, get in and get out, realise my losses and profits in a short time-frame, have the opportunity to make multiple trades a day (more trading opportunities = putting your capital to work more often). Compared to taking 4 or 5 trades over a week with huge stops on the daily yet risking the same amount per trade. If you are trading the higher time-frames you are investing not trading. For me trading on a 5 minute chart the returns are astronomical compared to daily or 4 hour, there is less risk as you are not in the market and being exposed to the many variables: news, politics, natural disasters etc etc
The only reason short term trading is risky is because people who cannot control themselves, have no trading plan or ability then go on gambling spree on the lower timeframes and murder their accounts.
If you know what you are doing, have a good trading plan, have the self-control (presence in your trading) then you can make a lot on the lower timeframes with less stress and less exposure.
I agree with you. I looked at scalping, day, swing and position trading when I first started. My overall bias is is the longer you’re in the market the greater your risk. People who’s bias is long term say, that’s wrong; whether ours or they’re right doesn’t matter its as long as you have a plan that’s done with good money management and executed with patience and discipline you have more of change being right than wrong. I use to trade similar to you, 5 minute frame, 6 pips plus SL back far enough that if there was a swing I wouldn’t get stopped out, but wouldn’t lose my account balance either. I took 5 to 10 trades depending.
A trader told me that’s okay for now but as your confidence grows, that plan will change and you’ll add more pips to your trade and more currencies. But none of that matters as long as the trades you do take have the potential. He was right. I keep track of when I enter and when I left and follow to see what I left on the table. In my case I let the trade run a little longer. A lot of scalpers and I agree with them the risk ratio has a better use for longer term traders. In the shorter term again and I agree with them, your win ratio is more important than 1 trade. If your risk ratio on the shorter term is 2:1 or 1:1 your not giving yourself much of an edge. If you did 5 pips and moved your SL to 15 or 20 depending and assuming your plan works then your win ration should go way up mine did anyways.
another note - Professional trader that scalp the market still do alot of research . the may only make 1 trade of a huge position and only make 10 pips
but when alot of newbie say they are scalper , really they are using the Forex like a slot machine
hand down making 100 small trade on one pair per day … is much worst then holding one trade for the length of time as you will be losing spread
mathematically - scalping is high risk
with a 1:1 ration
1 lot
target 10 pips
spread is going to be 2 pips mean that when you open ur already down when you start
stop lost 10 pips ( really that only 8 pips ) ( which really mean you are risking 2:1
mathematically - you need to be correct 50% of the time to break even
this is crazy odds as you will get stop out 62% as when you place the trade your spread is going eat half of your stop lost
so at best you will have 8 pips and not the 10 pips stop lost
but normal scalper use example : 25 pip stop lost to make 5 pips and trade 100 trade a day
this is even worst as you need to be correct 84% of the time just to break even
but waiting for the market to be just right , scalping a huge positions 1 a day is a good option
mathematically - muiltable scalp scalping is high risk
where long term trading IE : risking 30 pips to make 90 with 1:3 i only have to be correct 33% of the time
Yes it is true that long term traders can get high profits . They are professional and experienced trader .Wait for right move of market and react with planned strategy . In this way they can have more profits than short term traders.They can better manage their risks.
Long term trading can be profitable but it is also carry so much risk in trading too so you can do it but your performance could decide it that you make profit or loss.
I’m definitely on the same wavelength as you. As a newby made good money your way, but landed myself in a tight spot. Would you mind sharing your trade plan? I have to go back to the basics. Thanks, Ans
I think that only professional trader that could do like it. For my self, I can’t make money using long term trading. its more risky because we will miss and not control it
I don’t think you could ever get someone who is a position or swing trader to agree with someone who is a day trader and especially if someone is a scalper. Same as which if any indicators to use. It depends on what type of trader you are and what you’re trying to achieve. But as stonecoldmichael says anything can be profitable but you do have to work on it continuously.