Under the Trading Online defines scalping the opening and closing positions of various financial products in a very short time span, of the order of a few minutes. Scalping should not be confused with day trading concerns transactions with a daily time horizon.
Scalping is a highly speculative, the gains are usually a few pips and that’s why you do not use but fixed percentage commissions (up to 3 Euros), this tends to increase the stakes (lever) to reduce the cost of commissions.
Typically, a scalper makes a lot of transactions, even 240 per day.
Scalping is high risk and high stress. Try it on a demo account, see if you like it.
I doubt anyone can trade 240 times a day without seriously screwing up though. Don’t worry about the frequency of your trading, concentrate on trading high probability setups and use proper risk control. If you can do that, make money and enjoy it on a demo account then maybe you’re cut out for scalping.
Agree with you mate. Only bot aka EA can trade higher number of trades. But it’s risky.
Well, I’ve tried it for a short time. I just lose my butt. If I go high, it goes low, then switch to low, then it goes right back up. Very frustrating. In fact, I just stopped doing that very recently. Given my schedule (day job), it seems like you have to go one way or the other. Either find a couple hours to do some scalping, or find a longer term trade strategy, open position for a few days.
Hey, maybe all you need to do is research a good strategy for that. I’m sure it’s possible. Anything can be accomplished.
For me, as I demo like it’s live, it’s very frustrating.
So, from one newbie to another, good luck!
Scalping is not viable for the retail traders and the main reason is transaction cost.
Most institutional traders pay almost 0 spread. Because they can place their orders on the bids and offers, thus only paying a small commission.
In forex, you have to pay the spread no matter what. And that greatly diminish your trading edge, simply of the transaction cost.
^ this. Those who can actually scalp successfully are doing so on futures contracts and still have general skill and experience with broad market themes and understanding sentimental bias and such. Not something I would look to do as a beginning retail forex trader
Yep, that’s a pretty common observation Mike. A lot of people are attracted to scalping because they have the impression that’s where the action is and they figure that the higher frequency they trade, the more money they can make. So they head to the M1 or tick charts and find out why it’s called scalping… because they get scalped.
Trading is about loading the odds in your favour. It’s hard to do that on the M1 chart when your target is 5-10 pips away and your paying 2 pips of that to your broker and you have to analyse, trade size and execute your trade within 60 seconds. It’s too much pressure and all the odds are against you.
If you’ve got a day job, trade the H4 or D1 charts a while. And backtest. There’s plenty of trades on these timescales, you only have to scan the markets once per day, you can see your setups in the making days or weeks in advance, spreads are irrelevant (although rollover charges aren’t) and news volatility rarely spikes out your stop loss.
Give it a go for a while and see how it pans out.
Scalping is very risky so it is necessary that if trader is having proper trading skills then follow scalping strategy. Scalping is rewarding also but it is important to practice it well.
Risky if you dont know what your doing.
If you dont know what your doing, then you should risk None, by not scalping, simple as that, lol…
Im a scalper, and have been at it for 3 years, actually, to the day, well, in 75 minutes…
Things I have learned with scalping,
Dont trade NEAR Support and resistance, You want to be in the middle of them.
Trade with influence of the 1H, Then 5M, then 1M for entry.
72 EMA-Close-Tan(Each time Frame)(Tan)
2 EMA-Med White(Each time Frame)( I call this my Magnet Line)(Price typically is attracted to it after gaps)
5 EMA-Close-Yellow hash (Each time Frame)
2-5-9 MacD
3-3-3 Stoch
Thats it, my final system for scalping.
Not saying it will work for you, but if your looking for a system, Give it a try, and PRACTICE, PRACTICE, PRACTICE.
In demo, I WAS on a 40 win streak, since Sept 20th, but I use a tight Trail-stop on all my trades, and got a loss from slippage, as my Trail was set behind my Open price…
You cant be perfect, and now I expect it too happen from time to time…
Best of luck on your journey.
[QUOTE=“MoneyNVRSleeps;541000”]
Risky if you dont know what your doing.
If you dont know what your doing, then you should risk None, by not scalping, simple as that, lol…
Im a scalper, and have been at it for 3 years, actually, to the day, well, in 75 minutes…
Things I have learned with scalping,
Dont trade NEAR Support and resistance, You want to be in the middle of them.
Trade with influence of the 1H, Then 5M, then 1M for entry.
72 EMA-Close-Tan(Each time Frame)(Tan)
2 EMA-Med White(Each time Frame)( I call this my Magnet Line)(Price typically is attracted to it after gaps)
5 EMA-Close-Yellow hash (Each time Frame)
2-5-9 MacD
3-3-3 Stoch
Thats it, my final system for scalping.
Not saying it will work for you, but if your looking for a system, Give it a try, and PRACTICE, PRACTICE, PRACTICE.
In demo, I WAS on a 40 win streak, since Sept 20th, but I use a tight Trail-stop on all my trades, and got a loss from slippage, as my Trail was set behind my Open price…
You cant be perfect, and now I expect it too happen from time to time…
Best of luck on your journey.[/QUOTE]
Wow! 40 wins streak!
So may I guess that u execute trade based on when the 2 and 5 ema crosses with confluence of macd flipping plus stochastic overbought/oversold?
How about your TP and SL in terms of pips in different TF?
Please advise as we are all eager to learn! : )
To your success,
Alvin aka Singaporean Trader
http://forums.babypips.com/newbie-island/57469-my-live-trade-results-2013-a.html
Hi Alvin,
I am actually wrong, it was 33, with a 15% increase since Sept 20th, with a 2.5% drawdown
Seemed like 40ish, lol…
Anyways, still not bad…
I have other things I forgot to add, but its late and I have a early morning ahead of me… Just needed to stay up till midnight,
WHOOOO Hoooooo, I made 3 years in this business!!!
I will type everything up tomorrow morning, with pics… It will be in my thread.
Take a good one,
*HatTip
http://forums.babypips.com/newbie-island/44090-moneynvrsleeps-5-day-money-mangement-plan.html
I guess this depends on your trading personality? I myself have trouble with scalping because it makes me too nervous, haha.
I have a friend who’s a scalper and she tells me that there’s almost zero fundamental analysis involved. She says it’s a game of technical indicators, experience, and a lot of guts. If you’re the adventurous type and you like the rush of high frequency trading, then I guess you could give it a try (after giving it a lot of practice, of course).
Good luck!
MoneyNVR Sleeps has been trading with a $100 account for the last 3 years so that should tell you how profitable scalping really is.
I don’t get how someone with a 40 win streak has never moved beyond a micro account.
I always thought scalping was by the use of Level two data feeds where you can see true volume from the order books of your broker. This data is not available to most retail brokers unless you open a large account to warrant such access to Level two data feeds. MT5 does show “limited” Level two data, but you wont get favorable institutional spreads without a large deposit.
Level two data example where scalpers use the bid and ask price combined with the volume for a more informed approach.
Great tips on the 1 system 2 practice 3 The best advice for a new scalper “trade in the middle of S&R”
Congrats on your success
Gp
How many doctors perform brain surgery right out of high School?
Its about repetition, bottom line…
The way i trade, I cant be wrong to often… If it takes me 5 years to achieve what I have planed, its well worth it…
So i will practice till Im precise!! Because after all, being right is profitable… You know, like, you play to win the game!!!
I got my 5.8% today, 5-0, Waiting on my set up right now to be triggered.
Right now, Im 38-1 since Sept 20th. When I made adjustments to my system…
The lose wasnt even my fault but have to live with it… Im sure it will be sketchy when Im trading $1,000 a pip.
Its about chippin away, every day, Getting better, and learning from mistakes.
Thank You gp00053,
Back at cha!!
Thank You gp00053,
Back at cha!!
i agree with most that to made as many as 240 or even close you would likely have Automatic systems in place. even at a rate of 5 mins between trades 8 hours comes out at 96. not 240. 240 at 5 min intervals is 20 hours.
Yes scalping is a high Frequency trading concept. but because its high freq it is intense, you basically have NO time to think and keep your emotions in check. this would be where your emotions would be at there highest.
Basically without extensive experience and the mental strength to combat your fears immediately you will be dominated by fear and will likely blow out (Bankrupt) your account out Faster then you could imagine.