I am new to trading and I have a genuine question to ask. I have been “virtually trading” quite succesfully for some weeks now. What does virtually mean? let me explain. Basically, I have been following the 5m chart of a stock (ROR) for a while and, with a trading strategy in mind, I have opened and closed positions purely in my mind. setting stop losses and take profits just to see wether that trade would have gone well for me or not. I know there was no money involved so the experiment is not representative of reality, but i managed quite well I’d say, getting it right most of the times. Basically, the idea is to enter a position at price X when the conditions are for me advantageus and exit normally at a distance of 30 to 50 pips. I believe this is called scalping but I am not really sure. Anyhow, today I decided to try with real money and guess what, the trade would have been succesful if not for a fact I did not take into consideration: THE SPREAD. As soon as the market reached a certain condition (at the time the stock price was 4.32 and my take profit was at 4.76) I clicked on buy without realizing that the spread was 52 pips, above my TP target… needless to say that I closed negative because I bought at 4.84 instead of 4.32, the stock when up to my TP and then dropped again.
So my question is: how do you scalp 10, 30 or 50 pips if the spread is de facto not allowing you to enter at the price you want? is there a broker that allows CFD trading with no spread? is scalping only for forex?
thank you for you help,