On scalping. Its not How to scalp but what is scalping. Why scalp? To make pips (money). Scalping isn�t dependent upon economic data, perceived currency value, etc. Scalping is recognizing strong trends entering trades then exiting. Short term trading that�s scalping. You can scalp using fibs, PP, MACD, Stochs, moving averages, trend lines, etc. I use Oanda a lot of scalpers use an ECN because the low prices of trading and it worth it for large blocks of trades. Scalpers understand that consistently capturing pips is the only way to sustain a living. I see more full time traders that are scalpers than swing traders. Scalping does not require trading large size lots, doesn�t not require a robot to trade for you. Scalping is frequently thought to be price arbitrage. Price arbitrage is entering a trade and exiting when there is a price update delay of a currency pair. For some pairs the risk reward ratio will be a little off.
If you don�t like being in front of computer scalping isn�t for you. If you like or want fundamental factors in a trade scalping isn�t for you. If you don�t like watching the candlesticks scalping isn�t for you. If you cant devote no less than 1.5 hours 4 days a week scalping isn�t for you.
If you want to progress slowly scalping might be for you. If you aren�t greedy scalping might be for you. If you have patience and can stick to the rules scalping might be for you.
Profile of a scalper is usually intelligent. People who experiment to try to improve or adjust their own plan. Scalpers tend to try to sample other trading strategies and adapt their own style with them. Scalpers are more apt to help people who are serious to trading rather someone with a interest in trading.
It is very difficult to straddle or scalp the news with Oanda. Scalping is frowned upon by swing traders. Its like winning a big poker hand and getting up and leaving. Scalping almost erodes at you. Soon candlesticks will dance in your sleep. The way I scalp Im tied to the computer. Others can trade large lots and be done for the day.
There are many scalpers on babypips. We can all provide assistance to anyone serious of wanting to know how to scalp.
Thanks for doing this pablopluto. I would love to know more about scalping techniques. It is a hard subject to research. I also use Oanda. I have been studying candlestick formations for quite some time now, and have got to know them very well. Do you basically do it by knowing your candlesticks, and getting in and out by what they tell you? You said you can use fibs, PP, MACD, Stochs, moving averages, trend lines? I thought these would take too much time and by the time you set them up, you’d lose your opportunity.
I have no problem sitting in front of a computer. I just purchased a small laptop with mobile card to look at charts, to use when I can’t be at home. I’m ready to learn and try anything you teach.
If you just step in forex trading and already practice the demo a/c and showed a great talanted on demo. So u can now open your live a/c. Just a advise to you not to proceed with scalping. Most better to learn and familiar with day trade or swing trade . For day trade u can easier profit 120 pips daily. Just chooce 3 currency and setup 3 trade daily with 40 pips profit on the single trade. with take profit and stop loss. , when you look at you trade on next day , win postion all the trade proceed by you. Let say if you know to use the trailing stop that much better… Then this 3 trade can make you profit to 250 pips or more depending of the move of on that currency . From my view Day trade is better then scalping. You learn more , how to setup a trade., From here , Then you can move to swing trade
Those are really interest on scalping . Look at 1 min & 5 min time frame. At very top (short) &at very bottom ( Long) , when totally closed of the candle . exit &entry on 1 min time frame. Not need stop loss. Indicator setting > choice 1 currency & analysis indicator setting , familiar what setting that suite for that currency.
I am also waiting for your input on this subject as i’m not a scalper nor even considering myself as a trader since it is only 3 month i am trying demo.
What i do know is i want to learn. TheRumpledOne has also opened 2 new thread that are yet very interesting.
Tyman I mean by eroding at someone. Is the fatigue from sitting in front of the computer. Trading is very boring. As most traders know.
Fibs, PP, MACD, Stochs, moving averages, trend lines.
Fibs and PP can be scalped on the rebound from a retracement. Stochs can be scalped because they show momentum. Trend lines can be scalped when they break a trend line. These are all possible I use a MA crossover strategy. I use the MA’s as a entry signal. Scalping is done on small timeframe to get more entry signals. Scalping isnt as fast as most people think it is. Watching candlesticks is great for swing trading it can also be used in scalping but its unlikely because candle formation isnt fast moving. Fast moving trends are essential to scalping it provides the in and out we need to be consistent. ECN-Scalper and RumpledOne have more strategies than I do. I have about 4 that I use. The main one I use has been in writing here on babypips and the rules of it havent been that clear in the post. I will elaborate on it soon.
RumpedOne post my trading setup with a indicator on Thoghts on Scalping? post 61. RumpledOne also suggested adding a 50 SMA to indicate overall trend.
This is dangerous where as on a 15/30 min chart and the 5 min. May say different things. The 30 min chart may indicate a upward trend and the 5 min chart will say a downward trend. to guess on tops and bottoms you got a 50/50 chance which is horrible in my book.
Yes swing trading cn get 120 pips daily. The reason I scalp is because if the market turns at 115 pips it wont hit the 120 mark. Its harder to get 120 than 10 pips. Hope swing trading works out.
It’s been a while now that i think scalping is kind of boring because it is quick (whatever tick or minute), then this is a rule thing but not on pattern but price as TheRumpledOne always say. I’m sure it is possible to win sure and very quick money that way no matter the volume of it which depends on your account.
The only funny part of it would be to find (or SEE) other “quick” rules, depending on statistics for example. Then with practice, one would find a new method within an hour and can test it the next one.
This would be the only funny part IMO … but I’m just 3 month old in Forex…
I was scalping last week just using macd d crosses and a fast stochastic on 1min/5min charts. I have been working on and backtesting other indicators as well to use for scalping and day/swing trading. Scalping can be easy and very profitable under fast moving markets, but I prefer a longer strategy if the market is trading slower.
Scalping also reduces your stop loss risk because of the shortened time-frames.
Im trying to come up with a system to trade using Gamma, (to spot early ma crossovers, Fast Stochastic, (for momentum), Inversion,(to help identify larger inverse trend), and something called DSS Bressert to confirm exit/entry. Its a lot of info to look at yes, but I figure I can get this down to 2 or 3 by finding the right tweaks on the others.
Normally if you can proceed with a good trading setup . 4 hr,1hr,15min & to enter &exit on 5 min time frame. And if you read my forum posted ,i had mentioned to trade single lot with 40 pips profit, not 120 pips profit. If you can proceed with 3 different currency with 3 good setup , then you can 120 pips easier… To earn 120 pips on single trade like what you said,setup should be difficult . That the reason i had mentioned to setup for 40 pips profit for a every single trade lot… You risk is min &profit in your hand. But this is depending for on the rest what type of trade they like to proceed. let say you are very familiar with the scalping, then you can proceed.
i,m aslo scalping sometime, but while scalping i monitor the 4 hr&6 hr chart to proceed with a day or swing trade.
I misunderstood it to be 120 in a single trade not 3 40’s. if you aim for 40 pips you should do intra-day trading which is just longer than scalping 40 pips is perfectly reachable. Consult with Tymen or James for understaning candlesticks
pablopluto nice thread. Alot of us can learn from your style of trading and your concepts. Personally I agree it is far easier to get a few pips over and over than it is to get alot of pips once in a while. so for me aiming for 10-15 pips is alot safer and twice a day with good mm is all you really need to be a sucess.
That’s simple… I only trade when the reward is worth the risk. My TRO SR RR tells me what the risk:reward ratio is. I have a minimum setting. If it is RED, then it is below that minimum.
