Hello everyone,

Well I am getting interested in scalping. I am just enjoying the heck out of the 5 minute chart. However I had some questions about scalping. What kind of draw downs should I expect? I am going to be risking on average 1/10%-2/5% on each trade. Just wanted to ask other scalpers what kind of draw down they experience.

do you have a plan that your willing to post?

It’s not a question of what to expect. You decide how big a draw down you are willing to tolerate, then adjust your trading accordingly.

If you’re trying to get a read on how many pips in a drawdown, then we can’t hope to answer that question without knowing the type of strategy you are looking to employ.

Not sure how much draw down I can tolerate. I say to myself 15% draw down and I am ok, anything more and something is wrong. But honestly, I don’t know if I could sit there and just watch my capital drop and drop and drop down 15%! Maybe I just have to get more comfortable with the idea that there will be draw down and I should expect it and know that I will get past it and raise above it. Easily said, harder to put into motion I suppose.

Hi SwordofRue,

I would demo your strategy before risking any capital. You will most likely see that it is very hard/unlikely to consistently profit from such short term movements on a 5 minute chart when the spread and/or commissions are factored in. The risk to reward ratio will most likely be very poor for that time frame. It also requires constant chart watching throughout your trading day - this may or may not be ideal for your personality.

can anyone tell me wat is scalping?

From Babypips ForExpedia

Scalping involves making dozens or hundreds of trades a day, trying to scalp a small profit from each trade by exploiting the bid-ask spread. Scalping works because not all stocks remain on the move at all times. Scalpers generate profits from these non-moving stocks or turn around and sell for a profit those stocks that fluctuate in the positive direction. This way, they receive a small profit. This profit quickly adds up.
Some advantages to scalping include less exposure to risk (because it doesn’t have the time in one position to be effected), easier-to-obtain moves and more opportunities to realize a small profit. Of course, there are no perfect strategies. Many Forex trading platforms prohibit scalping and will charge a fee for making more than ten trades in a one day. Therefore, it would benefit the trader to find out if this practice is allowed on their particular platform.
It is important to have an exit strategy set up before trying to scalp, as it would only take one large loss to eliminate an entire day’s positive profits. Utilizing a one-minute chart will give the trader a better idea of what trades to make and which to shy away from.

Retrieved from ""
Categories: Trading Styles | Terms

I have officially kicked my scalping idea to the curb and now swing trading ^^; Isn’t that interesting, from day trading to scalping to swing!

Only one more time frame to go! How soon before it’s long term trading?


I like swing trading myself but there’s nothing wrong with throwing some scalping in from time to time :slight_smile: . I had many trades turn on me so I take 5-10 pips rather than breakeven.


hey i think we can use this strategy if we certainly know the movement of market?

We don’t know anything for certain. We just like to make guesses because we have established an edge.

hey u cant stay in trade longer if u r guessing the movement of market. u must be atleast 95% sure about the movement of market

If you have a way of being 95% sure of market direction, I’m sure there are loads of people here who would like to hear it.

hey tats why a forex trader should nt stop learning.

I’ve tested some brokers to be sure that scalpers are note banned or have their trades filtered.
I do not like to point the worst brokers, this generates free publicity and google position improvement to them.

Until now the best brokers to trade as a scalping are:

-Alpari (uk)

  • SpediaFX and
  • InterbankFX.

SpediaFX is the only one that I believe it is True ECN.
But the others do not have too many problem such as requotes.

QUOTE=n_aftab;3162]do you have a plan that your willing to post?[/QUOTE]

Great advice. You can make money scalping it’s no harder than making money swing trading. You apply different concepts. But one is not harder than the other, there all hard. Think of it this way; no matter what shortcuts, easier, skips you think or hear of. They have all been tried before. If there was one set strategy that was 100% , we would all be using it.

Whether you scalp, day trade, swing trade or position trade. It’s the same and no matter which way you decide to go, the path is the same, if you want a chance at long term success. You make a plan based on your personality, the money you have available and what you are trying to achieve trading and you need to write it down so you can refer or tweak it as neccessary. Your written plan should outline your trading method, your money management and the rules for both. After you do that, you work your plan using patience and discipline.

Trading Method. Rule of thumb: the shorter the time frame the more precise your entries and exits have to be. No matter what method you decide to use you will need a set of rules to trade by. For example; Start by defining what scalping, day trading swing trading or position tradings means to you . Not anyone else. For example my definition of scalping is trades that are opened and will most likely be closed by the end of the London session. Another trader may have a different definition. Figure out yours.

Rules. Your rules need to be very specific, again the shorter the time frames the stricter the rules. A couple of my scalping rules. Only trade between London NY overlap. Only enter on a simple moving cross, when shorter period is above the longer period, trade will be long, when longer time period is above shorter go short. SMA must line up with Stochastic. Trade must be verified with support and resistance etc.

Money management. You base it on your situation, your goals and your personality. Example, some traders can’t sleep if they have to hold a position over night or over the weekend. Some traders set and forget. Some traders use stop losses, some don’t, some base money management on building a bankroll some to conserve.

You need to make a plan based on your situation, personality and goals no matter what type of trader you are. As far as posting for other to see. Great idea. I did not post mine on any forum but instead I had a successful trader (my definition of success) review my trade plan and discuss any changes. Good Luck