i am a novice and still doing demo but while trading i observed candlestick patterns and saw predicted the trend that trend continued for 8 positive pips. so if spread is of 3 peps i can make 5 pips with in 2 mins. this is how i describe scalping. secondly is it possible to trade like this in real market(with retail ecn broker).
what is PDT rule does it apply in forex?
PDT:
FINRA:
Summary of the Day-Trading Margin Requirements
The rules adopt the term âpattern day trader,â (PDT) which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customerâs total trading activity for that same five-day period. Under the rules, a pattern day trader must maintain minimum equity of $25,000 on any day that the customer day trades. The required minimum equity must be in the account prior to any day-trading activities. If the account falls below the $25,000 requirement, the pattern day trader will not be permitted to day trade until the account is restored to the $25,000 minimum equity level.
The rules permit a pattern day trader to trade up to four times the maintenance margin excess in the account as of the close of business of the previous day. If a pattern day trader exceeds the day-trading buying power limitation, the firm will issue a day-trading margin call to the pattern day trader. The pattern day trader will then have, at most, five business days to deposit funds to meet this day-trading margin call. Until the margin call is met, the day-trading account will be restricted to day-trading buying power of only two times maintenance margin excess based on the customerâs daily total trading commitment. If the day-trading margin call is not met by the fifth business day, the account will be further restricted to trading only on a cash available basis for 90 days or until the call is met.
In addition, the rules require that any funds used to meet the day-trading minimum equity requirement or to meet any day-trading margin calls remain in the pattern day traderâs account for two business days following the close of business on any day when the deposit is required. The rules also prohibit the use of cross-guarantees to meet any of the day-trading margin requirements.
this however, does not apply to retail traders who are customers of market makers (OTC TRADES, bucket brokers). so does not apply to 99.9% of âday tradersâ who trade forex with any broker who accepts retail clients.
2 Likes
For lukasvisser
Trading session for ten minutes to an hour, trades open and closed very quickly, I donât know how to explain this any clearer, do we need to go any further with this bs.
Cheers
Fx
1 Like
Yes, I am! Whatâs the problem here?
Yes of course it is very possible to trade the way you have mentioned. The thing is you will need a large sample size in order to find out if your system will work over the short term. If so, then you are on your way to âscalpâ to your profit. I personally use binary options since I am aiming for small amount of pips while scalping. Why is that? Well because binary options, even using the forex option, gives much better odds for a successful trade.
scalping can be profitable, but itâs difficult to succeed in the long-term since this strategy exhaust much
Any trading style will bring profit if you trade wisely. Scalping just brings a bit every day (ideally) and other methods bring more but rarely.
1 Like
You can make a profit with your any strategy. You need a good practice on it and that can earn you profit from the strategy.
1 Like