I agree - the transaction costs kill you. In my first year trading live I scalped quite a bit using a small account - 900+ trades in less than a year, $37 million worth of trades (leveraged), loss $4k but transaction costs were over $30k. My win loss ratio was positive and for a begginer I think I traded well but the costs of 1.5-5 pips per transaction killed me and turned a positive first year in to a negative.
Since then I’ve slowed my trading down a lot, become more selective in only trading what I think are high probability trades and my trading has become fairly profitable.
There is a lot of advertising about scalping from brokers and some traders but my experience suggests to keep away from this style of trading.
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Scalping, like all other strategies, needs lots of practice by way of Demo-trading and back-testing. If it works out for you then, go live. If it doesn’t work out …look for another strategy that works out for you. A fair TRIAL WILL CONVINCE YOU! Wish you all the best!
Hi all
I trade daily and scalp between 5-15 times a day depending on a good set up.
Just looking at my trading history last few days, I had 27 wins and two losses, I’m not saying its the perfect method but I seem to get good results. I started trading forex about 3 years ago and seen my account go up and down more times than a ho… panties.
About 6 months ago I got introduced to scalping by some city guys half my age and have good results ever since.
What I do is look at the bigger time frames for conformation on trend then work my way down from daily to 1min graphs I only take trades on the extremes meaning the Bollinger’s has to be pierced and the stochastic has to be extreme. Make sure you take a note of supports and resistance areas, I also watch pivot points.
The important thing I found about scalping is to up your trade size and take profits quickly around 2-6 pips.
I trade this way on anything with a tight spread like the forex majors, Dow, Ftse and gold.
Don’t waste your time with unrealistic demo accounts just try it with a small account first.
And do not let your losses get to big cut them quickly!! My biggest mistake is not accepting a loss and clicking that button quicker. No ones perfect hey!
I don’t think scalping strategies are any worse than day, swing or position trading strategies. The problem is how they’re applied by traders and not just by newbies. There is no 1 size fits all strategy that will work every time or most of the time if not applied properly.
I think the reason that most new traders drift to scalping is because they think it’s easier to understand so therefore easy to apply. So they jump into the trade at the NY open with there 3:1 risk ratio applying the scalping strategy that they learned but really don’t stick to, the market goes the other way and oh oh, they moved their stop cause the market just has to turn around. Next they blow out their account and come to pips and say retail traders can’t make money scalping you don’t have the same info, indicators, and other sheet that the big guys do, the markets are fixed, the markets are a scam, indicators don’t work. They never tell you that they traded 5 minutes before the non farm employment change and the unemployment rate came out. Or they were trying to get 6 pips so their stop loss was 2, but it didn’t matter cause they moved it anyway.
Then other traders who trade longer terms always tell traders on shorter terms without knowing anything about their plan, personal situation, that they’re better off trading the longer terms. So the trader who is thinking well longer terms got to be easier than scalping so let me jump and start trading longer terms. So they take a little bit from this trader a little from that trader, still don’t figure out, that trading any strategy is not easy, quick or glamerous, that no matter what you do or how you do it, it takes time. patience and discipline. Of course that’s just my opinion.
The shorter the timeframe, the greater the need for accurate quotes and immediate access to a trading desk.
And for most of us retail traders sitting at our computers that puts scalping beyond reliable reach.
Hello MoneyNVRSleeps
you already answered for scalping in my earlier thred
http://forums.babypips.com/newbie-island/54609-trading-short-terms.html
Did you have changed your system?? Please explane more.
What means “EMA-Med White” exponential OK. Med? Median price? white, just colour?
hash?
Tan?
Do we can get a sceenshot?
rules?
Great Post gp00053, you hit it on the head more ways then 1.
I barley traded today, to much, Hummmmmmmmmmm, lol…
And, Im actually not feeling well, almost went to the Doc because really bad anxiety today… Just found out my mom lost her house due to taxes… The sale was this morning… So, i must of felt her emotions, which i do very often… Odd, huh…
I didnt even know about the sale,
sigh*******
Now, what do i do?
I can flip a $1,000. But its risky, just because…
But its almost like I have to try… Time to get this rolling…
I can throw $5,000 down today, SMH
Is it about timing? I dont know, Im stressed, lol…
Hey Bern, Man, that was a long time ago, lol…
Yeah, new system, again… sure it dont surprise many here, lol… But this system i have been running for 2 weeks now,
This is my 1 hour chart
Right now, im 53-3 and up 32% in last 7 trading days,
3 loses due to Trail stop slippage, and less then .3 of a pip
Trail got me crap, but i guess i bank more on runners and fingers crossed… The trail is a bad habit…
Here is another screen shot, and this is the most consistent I have ever been since starting Forex…
@gp00053
I’ve read some of your posts here at BB. I love reading them as they spell wisdom and experience. You would be one hell of a mentor on this business. Please keep sharing you thoughts and view points as some of us really appreciate them (and learn from them).
Thank you very much. Just trying to help out
Hello MoneyNVRSleeps, Can you please post the above all the indicators,Thanks
Those are very good results. But how do you maintain such a high win rate?
Hey, not sayin this is grailish, by no means, just gives a sense of movement, and bounderies…
Bern, look at this pic, and you can see the yellow block at the top of the chart, click and drag to adjust your chart so the action doesnt impede or block your MA meters.
ye the ma-meter is in the longer time frame so no problem. your last screen shows 1H, so you just switch down to 15m 5m 1m. You scalp then in 5m or 1m? and what are your entry roles? Must stoch be extreme in all TF or on its way up/down?
If you use good money management and risk to reward this can work very well. but I try to get around 20 pips on each trade so its more intra-day trading for me. I often just toss a coin on buy or sell and this tends to work well over a number of trades.
tried in demo today about 20 scalps. win rate about 80% but the looser eaten all profit. so just broke even. problem is spread. if you go for 2-3 pips target, SL could be 5 pip + spread so 8pip - 10. I try to set SL over a fractal level and set trailing stop 2pip.
How do you folks do it.
Personally I avoid scalping thanks to the yen rumble and unless you know what you are doing, the DD will eat everything up