Hi
With my own going studies , i have more question for you pros. Thanks again in advance
How is scalping more risky than swing trading? Surely with scalping, when you get the trend and the indicators right and you see a trend starting , you can get in and out with your 3-4 pips whilst your at the PC
With swing trading, how can you control the trade over a number of days?Trailing stops? and if so id imagine the stop would have to be considerably lower to avoid the spikes?
forex wales
It isn’t riskier. With scalping, you need to overcome the spread much more often. Since you’re aiming for a small profit (a few pips max), you’re likely to find yourself giving back 40% or more due to spread.
If you swing trade, you’re looking for formations on the longer timeframes. This inherently implies that whatever signals you get are slower to appear than on shorter timeframes. Signals also become exhausted at a slower pace on higher timeframes. So, if you trade from the daily, you only get 1 candle per day. A head-and-shoulders formation would take weeks or even months to form. Market exhaustion, likewise, would take a few days or a few weeks for it to become evident.
this barb
ye- ive witnessed this on the demo account. Before i start, ther broker has taken a good number of pips at the spread. What do scalpers do? Aim high with the spread in mind?
Hi forex whales
What I recommend is that you find a strategy that suits your personality, and time you have for trading.
Only once you find a strategy you comfy with only then can you target the emtional side of trading, that itself will take some time to master! :rolleyes:
Cheers
I don’t do high frequency scalping. I’m just a day trader who uses the 5m timeframe.
A scalp is risky because of the gain to loss ratio.
If you get 2 pips, 5 times in a row, your up 10. Say you have a stop loss up very tight at 5 pips. 2 losses wipe you out.
Risk tolerance plays a very big role in scalping. If your MM is good, and you have a high risk tolerance, and a great setup for entry signals, there are many high probability trades available daily. But you will invariably incur either a large unrealized loss, or large stop loss triggered altogether. A HIGH winning percentage is a must, and the ability to let go of a bad trade quickly is another requirement.
Hard stops make the difference here. Trailing stops don’t allow for price action. Trade management is crucial to maximizing gains.
No, you don’t aim high.
You start low, by using the pair with the smallest spread. Usually E/U.
Cheers!