is it possible to trade positive pips every day by scalping method. If yes then how many positive pips and in how much time ? just curious.
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Scalping’s profitable for successful traders with the skills and facilities to do it.
For those people, it’s also the lowest-risk kind of forex-trading there is.
But you need to understand clearly that scalping and retail forex trading are mutually exclusive.
There are several reasons for this, but the main one is that the person you think of as your “broker” (and the Babypips course unfortunately refers to that way) is actually your counterparty and would therefore be the party being scalped!
Nobody minds you scalping the market, but with a retail forex broker you’re not in “the market”: you’re only in “their market”. And they won’t let you take their money for ever, will they, even if you can find a way to do it profitably?
Which is why it doesn’t and can’t work.
Honestly, it’s that simple.
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Thanks, Lukas. I’m glad you replied first, before any inaccuracies appear in the thread.
So many people misunderstand this.
Anyone who thinks that retail forex traders can profit from scalping EITHER doesn’t understand what scalping is, OR doesn’t understand the difference between a counterparty “broker” and a real one.
(Or both, of course!)
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Hey mahaar,
I’m a scalper and i retired at age 29 and and am now over half a century young lol.
Pips depend on how much you require, I look for 2 pips a day for living expenses now if ur on minis this is not going to cut it, you need to workout how much you want a day and then divid that by the pips your comfortable trading for and then workout what size contracts your going to have to trade to reach that goal.
Time wise I’m generally in the market for 10mins to an hour depending on market conditions roughly.
There’s a lot more to it than that, you ned a good system, you need to know how you will respond to certain criteria in the market, etc, etc but thats a different question altogether.
cheers
Fx
Scalpers, on the other hand, are in the market for seconds.
You’re talking about “intraday trading”, there, not “scalping”. Scalping is something specific, and very different from what you describe.
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Best you describe in more detail how you define scalping. We might be able to help more specfically idf we understand your definition.
Mine, scalping - crossing the spread, close and take profit.
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That’s what scalping has always meant, everywhere, throughout the trading industry, as far as I know?
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Yeah, everyone except the educators.
Even Bob Volman flogs his 10 pip trade as scalping.
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That really surprises me!
Forex price action scalping.
Got to admit, sounds so sexy cool, who wouldn’t want to. Its my bible lol
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i think you have trade duration confused with session time laughingcharlie
cheers
Fx
Session times?! Lol
You seem to be the one confused here, my friend: holding trades open for up to an hour has nothing to do with scalping at all.
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"
What is 'Scalping’
Scalping is a trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy place anywhere from 10 to a couple hundred trades in a single day in the belief that small moves in stock price are easier to catch than large ones; traders who implement this strategy are known as scalpers. Many small profits can easily compound into large gains if a strict exit strategy is used to prevent large losses.
BREAKING DOWN 'Scalping’
Scalping utilizes larger position sizes for smaller price gains in the smallest period of holding time. It is performed intraday. The main goal is to buy, or sell, a number of shares at the bid, or ask, price and then quickly sell them a few cents higher, or lower, for a profit. The holding times can vary from seconds to minutes, and in some cases up to several hours. The position is closed before the end of the total market trading session, which can extend to 8 p.m. EST.
Scalping Characteristics
Scalping is a fast-paced activity for the most nimble traders. It requires precision timing and execution. Scalpers use day trading buying power of four to one margin to maximize profits with the most shares in the shortest amount of holding time. This requires focusing on the smaller timeframe interval charts such as the one-minute and five-minute candlestick charts. Momentum indicators such as stochastic, moving average convergence divergence (MACD) and relative strength index (RSI) are commonly used. Price chart indicators such as moving averages, Bollinger bands and pivot points are used as reference points for price support and resistance levels. Scalping requires account equity to be greater than the minimum $25,000 to avoid the pattern day trader (PDT) rule violation. Margin is required to execute short-sale trades.
Scalpers buy low and sell high, buy high and sell higher, or short high and cover low, or short low and cover lower. They tend to utilize Level 2 and time of sales windows to route orders to the most liquid market makers and ECNs for quick executions. The point-and-click style execution through the Level 2 window or preprogrammed hotkeys are the quickest methods for the speediest order fills. Scalping is purely based on technical analysis and short-term price fluctuations. Due to the extensive use of leverage, scalping is considered a high-risk style of trading.
Some of the common mistakes that scalpers make are poor execution, poor strategy, not taking stop-losses, overleveraging, late entries, late exits and overtrading. Scalping generates heavy commissions due to the high number of transactions. A per-share commission pricing structure is beneficial to scalpers, especially for those who tend to scale smaller pieces in and out of positions.
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professional scalping:
Fraudulent use by adviser
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. 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. The Securities and Exchange Commission has stated that it is committed to stamping out scalping schemes.
Scalping is analogous to front running, a similar improper practice by broker-dealers. It is also similar to but differs from pumping and dumping, which does not involve a relationship of trust and confidence between the fraudster and his or her victims.
google. so much more usefull than a forum.
Yes, if the money is properly utilized, scalping can be a great trading strategy for the small, retail traders. Even for the novice traders is a great strategy to work with. In scalping traders frequently try to earn smaller to moderate profit by each smaller lot trade and their investment time horizon focus is short term period.
Yes, scalping is the profitable one! Usually I set my TP for 10-16 pips with 6-8 pips SL. Besides, there is no specific answer on the time!
It was so laudable of both you guys to commit yourselves to the effort of actually reading the thread, before giving us all the benefit of your undoubted wisdom and experience on the subject. Many thanks indeed.
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what’s about ecn brokers they donnot act as your counterparty there are many brokers who are retail ecn’s like instaforex.
thankyou fxexpat it is an honor to chat with a veteran trader sir. Is it possible to find retail ecn brokers as i have heard that only ecn brokers are good to apply scappling technique i am looking for 15-20 pips a day do u think that can be done by scalping. thankyou sir